U.S. stocks climbed to record levels Thursday for the first time in 17 years, boosted by a rally in oil prices as well as upbeat economic data.
All three main indexes closed at record highs on the same day for the first time since Dec 31, 1999. The benchmark S&P 500 index rose 10.30 points, or 0.5%, to 2,185.79 beating its previous record high from last Friday, with energy and consumer discretionary stocks leading the gains, while only utilities sector lagged behind. The Dow Jones Industrial Average DJIA gained 117.65 points, or 0.6%, to 18,613.31. Meanwhile the Nasdaq Composite Index ended the session up 23.81 points, or 0.5%, to 5,228.40.
The S&P 500 is priced at about 17 times expected earnings, compared with a 10-year average of 14 times expected earnings,
Crude-oil futures jumped to nearly three-week highs after Saudi Arabia's energy minister said major producers might take action to stabilize prices at a meeting next month.
Global Equities Return
Investors have been turning to global equities amid better-than-estimated corporate earnings, improving economic data and are optimism that central banks will remain supportive of growth. The number of Americans filing applications for unemployment benefits was little changed last week, holding near four-decade lows that point to a more robust labor market. Still, that stronger jobs picture has yet to convince traders that the world’s largest economy is solid enough for the Federal Reserve to raise interest rates this year.
According to Randy Frederick, managing director of trading and derivatives for Charles Schwab in Austin, "I'm a bit surprised to see us hitting record highs again. We are pretty topped out and we should move sideways for a while."