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Wall St extends rally, pushing S&P 500 to 50th all-time high close this year

Stock MarketsAug 24, 2021 06:31PM ET
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© Reuters. FILE PHOTO: A person waits on the Wall Street subway platform in the Financial District of Manhattan, New York City, U.S., August 20, 2021. REUTERS/Andrew Kelly

By Stephen Culp

NEW YORK (Reuters) - Wall Street ended higher in a late-summer, light volume rally on Tuesday as the FDA's full approval of a COVID-19 vaccine on Monday and the absence of negative catalysts kept risk appetite alive ahead of the much-anticipated Jackson Hole Symposium.

All three major U.S. stock indexes advanced higher, with the S&P 500 and the Nasdaq closing at all-time closing highs.

The session marked the S&P 500's 50th record high close so far this year.

Tech and tech-adjacent megacaps were once again doing the heavy lifting, but economically sensitive cyclicals and smallcaps outperformed the broader market.

"Investors are looking at the horizon at the big Jackson Hole meeting on the horizon," Ryan Detrick, senior market strategist at LPL Financial (NASDAQ:LPLA) in Charlotte, North Carolina, referring to the Federal Reserve’s annual economic symposium on Friday. "But for now the feel-good from yesterday’s vaccine news is still in the air."

The Food and Drug Administration's full approval of the Pfizer-BioNTech COVID-19 vaccine on Monday fueled optimism over economic recovery which spilled into Tuesday's session.

Travel and leisure sectors, associated with economic re-engagement, outperformed the broader market. The S&P 1500 Airline and Hotel/Restaurant/Leisure indexes gained up 3.7% and 1.6%, respectively.

"We have energy, retail, travel, leisure, financials, and small caps all doing well today," Detrick said. "And that’s a sign that the reopening is alive and well."

Recent economic indicators suggest the recovery from the most abrupt recession in U.S. history is headed in the right direction, but not to the extent that is likely to prompt the Fed to tighten its dovish monetary policy.

Fed Chair Jerome Powell is due to meet with other world bank leaders when the Jackson Hole Symposium convenes later this week, and his remarks will be closely parsed for any clues regarding the Fed's tapering of asset purchases and hiking key interest rates.

The event will take place virtually and not in person due to the spread of COVID-19 in the county, which has reduced expectations that any major announcement will be made at the event.

"The fact that the Fed is having a virtual (Jackson Hole) meeting tells you that they might be thinking maybe they need to keep supporting the economy," said Detrick.

The Dow Jones Industrial Average rose 30.55 points, or 0.09%, to 35,366.26, the S&P 500 gained 6.7 points, or 0.15%, to 4,486.23 and the Nasdaq Composite added 77.15 points, or 0.52%, to 15,019.80.

Energy was the top gainer among the 11 major sectors in the S&P 500, boosted by the continued rally in crude prices. [O/R]

Best Buy Co Inc (NYSE:BBY) jumped 8.3% after the electronics retailer beat analyst earnings expectations and raised its full year sales forecast.

U.S.-listed shares of China-based e-commerce platform Pinduoduo (NASDAQ:PDD) Inc surged 22.2% after reporting its first ever quarterly profit.

JD (NASDAQ:JD).com gained 14.4% in the wake of the Chinese online retailer's remarks on Monday that it does not expect any business impact from a wave of regulations hitting the industry at home.

Other shares of Chinese companies listed on U.S. exchanges were bouncing back as well, with the Invesco Golden Dragon ETF jumping 8.0%.

Cybersecurity firm Palo Alto Networks (NYSE:PANW) Inc advanced 18.6% as brokerages raised their price targets following its full-year forecast beat.

Advancing issues outnumbered declining ones on the NYSE by a 2.17-to-1 ratio; on Nasdaq, a 1.82-to-1 ratio favored advancers.

The S&P 500 posted 28 new 52-week highs and one new low; the Nasdaq Composite recorded 96 new highs and 37 new lows.

Volume on U.S. exchanges was 8.97 billion shares, compared with the 9.08 billion average over the last 20 trading days.

Wall St extends rally, pushing S&P 500 to 50th all-time high close this year
 

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Comments (12)
elad maderer
elad maderer Aug 24, 2021 5:41PM ET
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Buy stocks now it will just go up and you'll be left behind!!!
Dave Jones
Dave Jones Aug 24, 2021 4:28PM ET
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stocks are so understand right now
Dave Jones
Dave Jones Aug 24, 2021 4:28PM ET
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undervalued
Francesco Lucchesi
Francesco Lucchesi Aug 24, 2021 12:45PM ET
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expect more stimulus to boost further
Matt Goodwin
Matt Goodwin Aug 24, 2021 12:29PM ET
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I personally would not like reporting on the markets throughout this pandemic. Seems like an impossible job. So no offense, but im just waiting for the most honest headline ever written in which it will say “markets hit record highs, and we have no idea why.”
Stan Smith
Stan Smith Aug 24, 2021 12:29PM ET
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Plus they have to pretend that markets aren't propped up solely by the FED.
Tom Rompella
Tom Rompella Aug 24, 2021 12:29PM ET
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My hypothesis is that they have two or so bullish and two or so bearish headlines made every morning and then depending on what the market does they release the one that fits.
Lex Wild
Lex Wild Aug 24, 2021 10:15AM ET
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No Tapering boost, Vaccine boost, Economy boost and so on boost everywhere ;-)
Ricardo Diogo
Rcd72 Aug 24, 2021 10:11AM ET
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fake! fed program is the fraud
Jouni Matero
Jouni Aug 24, 2021 10:11AM ET
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Besides, 99% of FED tapering helps rich ppl
TheEnd IsNigh
TheEnd IsNigh Aug 24, 2021 10:11AM ET
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So when do we cycle back around to: "Wall Street down on Delta worries"?
Firt Ladt
Firt Ladt Aug 24, 2021 9:53AM ET
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🌈🐻
John Richard
John Richard Aug 24, 2021 9:49AM ET
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there's no reason this should be real
Mitchel Pioneer
Mitchel Pioneer Aug 24, 2021 9:43AM ET
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The US Ponzi Scheme is a fraudulent, criminally manipulated joke.
James betty
James betty Aug 24, 2021 9:43AM ET
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dm you won
Millennial Metals
Millennial Metals Aug 24, 2021 9:27AM ET
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Hyperinflation is here folks
Mujitapha Mahmud
Mujitapha Mahmud Aug 24, 2021 7:42AM ET
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The Fed's annual Jackson Hole symposium later this week will be closely watched for chair Jerome Powell's speech, which could offer clues on the central bank's policy-tightening timeline.
 
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