Fundamental Comment

S&P 500 index hits all-time high, technology leads rally

S&P 500 index hits all time high, technology lead rally

US stocks closed high on Thursday after the Federal Reserve hinted at possible interest rate cut as soon as next month, where Wall Street's main indexes have gained in recent weeks on hopes of a revival of trade talks between the United States and China.

The S&P 500 index achieved 0.95% increase, hitting a an all-time record high of 2,954.18, as the tech and energy sectors led the rally, mentioning that US President Donald Trump tweeted earlier today “S&P opens at Record High!”

The Dow Jones Industrial Average closed at 26,753.17, increasing by 0.94 percent, led by Caterpillar and Exxon Mobil. Nasdaq Composite index finished at 8,051.34, climbing 0.80%.

Microsoft and Amazon were among the best performers; also Facebook, Apple and Alphabet finished higher.

 Amazon shares increased by 0.49 percent, Facebook jumped 1.09 percent, Apple augmented +0.80% and Microsoft added 0.93 percent.

Low interest rates were fuel for the bull market, allowing companies to borrow money at a cheap price to buy back stocks.

Boeing Co gained 1.01 percent after the aircraft maker said it was in talks with other airlines to sell its 737 MAX after receiving a letter of intent for 200 IAG-based aircraft.

Energy shares got a boost from the advance in oil prices as crude oil increased by 5.8 percent, posting their biggest one day gain so far this year, after the tensions between the U.S. and Iran intensified.

Iran said it shot down a U.S. drone in its airspace and Trump tweeted “Iran made a very big mistake.”

Trump and Chinese President Xi Jinping agreed to meet at the G20 summit in Japan in late June to resume talks that halted in early May.

As of 20:30 GMT, the US dollar index that measures the dollar’s performance versus six major currencies decreased by 0.49% to 96.64.

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