S&P 500, Nasdaq hit record highs as tech stocks climb

The S&P 500 set another record high on Monday as the market continued to rise in the final days of August. The broad market index gained 0.5% to set a new intraday record high, and the Nasdaq Composite traded up 0.9% for its own all-time high. The Dow Jones Industrial Average shuffled between gains and losses in midday trading. Key technology shares were leading the way on Monday. Microsoft and Netflix each rose about 1%, while Apple jumped 3%.

Shares of Affirm Holdings surged more than 40% after the buy now, pay later company announced a partnership with Amazon on Friday. Amazon’s stock rose about 2%. Financial stocks weighed on the broader market, with Capital One shedding over 4% and Wells Fargo losing 2%. Paypal, however, broke that trend and rose more than 2% after CNBC reported that the company is exploring a stock-trading platform for its U.S. customers.

Monday and Tuesday mark the last two trading days of August. Thus far, the S&P 500 is up 2.6% in August. The Dow Jones Industrial Average and the Nasdaq Composite have risen 1.5% and 3.1% this month, respectively. The S&P 500 and the Nasdaq Composite closed at all-time highs on Friday as investors breathed a sigh of relief after Federal Reserve Chair Jerome Powell signaled bond tapering could start this year, but the central bank is in no rush to hike interest rates.

Powell said inflation is solidly around the central bank’s 2% target rate, one of the goals of the Fed’s dual mandate; however, the Fed chairman also explained why he continues to think the current inflation rise is transitory and will eventually drop to the target level.

Based on statements from other Fed officials, a tapering announcement could come as soon as the Fed’s Sept. 21-22 meeting. Powell said the central bank has “much ground to cover” to reach its other goal of maximum employment.

S&P 500, Nasdaq hit record highs as tech stocks climb, CNBC, Aug 31