NASDAQ stutters, but Dow presses through to fresh highs

Both the S&P 500 and the Dow have advanced today, with the latter on course for a record close.

With under an hour to its close, the Dow Jones was trading up 0.80% or 125 points at 15,473, just shy of the intraday record set earlier in the session of 15,470.85. This leaves the Dow poised to smash its previous closing high of 15,680.35.

Leading the charge was Microsoft, which gained over 4% to $38.10 per share, hitting a 12-year high.

The S&P 500 also rose, although its gains were more modest than the Dow, climbing 0.34% to 1769.00. The NASDAQ 100 gave up earlier gains though, to trade down 0.17% at 3383.0, with Facebook, Apple and Google all sliding.

The buoyancy of the broader market, not just today but as a whole since the resolution of the fiscal spat in Washington, speaks volumes about the effects of the Fed’s stimulus.

Yesterday, two different research papers published by economists at the Fed contended that the current state of the US economy demands continued accommodative monetary policy. The papers, which will be presented to the IMF later this week, argue that it might be more effective for the Fed to lower its unemployment threshold for keeping interest rates near to zero (currently the Fed says it will maintain near-zero rates at least until unemployment drops below 6.5%).

Tomorrow we have jobless claims and GDP data, both of which will, we can assume, be guiding factors in the Fed’s decision on how to proceed with stimulus.

IGA, may distribute information/research produced by its respective foreign marketing partners within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.

This information/research prepared by IGA or IGA Group is intended for general circulation. It does not take into account the specific investment objectives, financial situation or particular needs of any particular person. You should take into account your specific investment objectives, financial situation or particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. In addition to the disclaimer above, the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.

See important Research Disclaimer.