NEW YORK — More encouraging economic news and friendly signals from the Federal Reserve cheered investors on Thursday, as the stock market climbed to another record high. ADVERTISING NEW YORK — More encouraging economic news and friendly signals from the
NEW YORK — More encouraging economic news and friendly signals from the Federal Reserve cheered investors on Thursday, as the stock market climbed to another record high.
The gains came a day after the Fed made clear that it’s in no hurry to raise a key bank lending rate, easing a major concern for the stock market.
Eight of 10 industry groups in the Standard &Poor’s 500 index rose, led by financial stocks.
“The question isn’t ‘Why are we up today?’” said Dan Veru, chief investment officer at Palisade Capital Partners in New York. “It’s ‘Why aren’t we up a lot more?’ What you’re seeing is the U.S. economy growing at a modest pace, not too hot and not too cold.”
Veru said it’s an environment that allows the Fed to stick to a policy that coaxes businesses to borrow and spend and could fuel further gains for stocks.
Two of three major U.S. indexes finished at all-time highs: The S&P 500 index gained 9.79 points, or 0.5 percent, to 2,011.36, while the Dow surged 109.14 points, or 0.6 percent, to 17,265.99. It was the second straight day the blue-chip index has closed at a record.
The Nasdaq composite, meanwhile climbed 31.24 points, or 0.7 percent, to 4,593.43, well below its dot-com era peak.
The S&P Financials sector rose 1.1 percent. Bank profits could rise if short-term rates stay low while the rates they charge on longer-term loans creep higher.
The day began with good news about the economy. Fewer Americans filed first-time claims for unemployment benefits last week, according to the Labor Department. Weekly applications fell to 280,000, well below economists’ forecasts. The four-week average, a less-volatile measure, also dropped.
Major markets in Europe headed higher as voters in Scotland decided whether to break from the United Kingdom.
