Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

Dow and S&P 500 hit all-time closing high, as Fed rate hike fades

Published 05/18/2015, 03:59 PM
Updated 05/18/2015, 04:32 PM
U.S. stocks moved broadly higher on Monday, as the Dow and S&P reached all-time highs

Investing.com -- The Dow Jones Industrial Average and S&P 500 Composite index both eclipsed all-time closing records on Monday, amid growing possibility that the Federal Reserve could delay a much-anticipated interest rate hike.

The Dow gained 26.32 or 0.14% to close at 18,298.88, above its level of 18,288.63 on March 2 when it last hit an all-time closing high. The S&P 500 also posted modest gains, rising 6.47 or 0.30% to 2,129.20, reaching an all-time closing high for the third consecutive session.

The NASDAQ Composite index, meanwhile, also moved near-record territory gaining 30.15 or 0.60% to close at 5,078.44 . The NASDAQ remained just off its record closing-high of 5,092.08 on April 24.

Federal Reserve Bank of Chicago president Charles Evans reiterated on Monday that while the Fed could still consider an interest rate hike in June if the economy is trending upward he doesn't recommend raising rates until the start of 2016. Speaking at the Swedbank Conference in Stockholm, Evans argued that the Fed should aim to "overshoot" its targeted goal of 2% inflation on an annual basis. For years, Evans has been regarded as one of the most dovish members of the Federal Open Market Committee.

Boosted by a surge in Apple Inc (NASDAQ:AAPL), the Dow moved above 18,200 for the first time since Mar. 4 – two days after it last hit an all-time closing high. Over the last two months, though, it has experienced choppy trading, amid a wave of soft economic data, uncertainty surrounding lift-off by the Fed and wild fluctuations between EUR/USD.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Shares in Apple gained 1.61 or 1.25% to 130.38 after billionaire activist investor Carl Icahn said on Monday that the tech giant is dramatically undervalued at its current level. Setting a new target level at $240 a share, Icahn said Monday that Apple should be priced at an EPS of $12 by fiscal year 2016. Apple ended the session as the second-highest performer on the Dow, just behind Intel Corporation (NASDAQ:INTC), which gained 0.42 or 1.27% to 33.41. The worst performer was Chevron Corporation (NYSE:CVX), which fell 1.29 or 1.19% to 106.74.

The biggest gainer on the NASDAQ was Altera Corporation (NASDAQ:ALTR), after the chipmaker reportedly resumed negotiations with Intel on a potential merger that could exceed $12 billion. The renewed discussions were first reported by the New York Post. Altera gained 2.57 or 5.79% to 46.99. The worst performer on the NASDAQ was Keurig Green Mountain Inc (NASDAQ:GMCR), which has seen its stock dip in recent sessions amid delays in the scheduled launch of its iced coffee maker.

Altera was also the top performer on the S&P 500, ahead of Discovery Communications Inc (NASDAQ:DISCA), which gained 1.23 or 3.86% to 32.98. Keurig, the worst performer on the index, finished just below Transocean which fell 0.64 or 3.08% to 20.15.

An uplifting Coca-Cola (NYSE:KO) commercial which garnered significant attention in Sunday's series finale of Mad Men, had little impact on the beverage's stock price. Shares in Coca-Cola fell 0.20 or 0.48% to 41.32.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.