On Thursday, we saw a top performance by the Nasdaq Composite (IXIC) when the tech heavy index wiped away its final milestone from the dot-com era and then set an intraday record high.
Added to this, U.S. stocks rallied on Thursday as a result of strong economic data.
Meanwhile, according to a report which appeared in Die Zeit, a German newspaper, it seems that international creditors might be considering concessions which will be made to Greece. As a result of this report, the market’s rally was extended despite the fact that EU diplomats later denied the report.
During the trading day, the Nasdaq Composite reached a high of 5,143.316. This saw the index overtake its previous record of 5,132.52 which has been standing firm since the 10th of March 2000. The tech heavy index also hit a record closing high and so did the Russell 2000 index (RUT). Joining in on the upward action was the S&P 500 index (SPX) which closed within 0.5% of its record.
According to U.S. economic data released yesterday, for the month of May, consumer prices posted their largest increase in more than 2 years. Added to this and in a separate report, data showed that last week, initial jobless claims applications declined to a near 15-year low while factory activity in the mid-Atlantic region increased in June to a 6-month high.
According to John Manley, a chief equity strategist at Wells Fargo (NYSE:WFC) Funds Management in New York, it is evident that economic growth is happening in the U.S.
In addition, on Wednesday, the dovish comments by the U.S. Federal Reserve have continued to support equities. According to Manley, it can be expected that the Fed will be “very slow to raise interest rates".
At the close of trading, the Nasdaq Composite (IXIC) added 1.34%, or 68.07 points, to 5,132.95 while the Dow Jones industrial average (DJI) rose 1%, or 180.1 points, to 18,115.84. Also on the upside was the S&P 500 index (SPX) which gained 0.99%, or 20.8 points, to 2,121.24. According to BATS Global Markets data, approximately 6.2 billion shares changed hands on U.S. exchanges. This was above the 5.96 billion daily average so far in the month of June.