Tech Powers S&P 500 To Record Closing High, Dow Now Positive For The Year

Economic data released before the bell showed American consumers, who account for about 70% of the U.S. economy, increased their spending more than expected in July but the savings rate, a barometer of consumer uncertainty, remained elevated well above pre-pandemic levels.

The personal consumption expenditures (PCE) core index, which excludes food and energy, rose at a rate of 1.3% year-on-year. On Thursday, U.S. Federal Reserve Chair Jerome Powell unveiled a new monetary strategy adopting an average annual inflation target of 2%, implying the central bank could keep key interest rates near zero even if inflation rises above its target.

“(The Fed’s) new-found acceptance of higher inflation suggests the recovery could continue for much longer, as will near-zero rates,” Carter added.

Unofficially, the Dow Jones Industrial Average rose 160.77 points, or 0.56%, to 28,653.04, the S&P 500 gained 23.3 points, or 0.67%, to 3,507.85 and the Nasdaq Composite added 70.30 points, or 0.6%, to 11,695.63. Energy stocks ended the session with largest percentage gain among the major S&P sectors after Hurricane Laura passed through the Gulf region without causing widespread damage and oil rigs and refineries began to restart operations.