U.S. stocks extend record rally on better than expected data.
The U.S. stock market rallied on Wednesday, as the major indices touched new highs on the release of better than expected data.
All of Wall Street’s major indices settled at new all-time highs ahead of Thanksgiving holidays. The Dow Jones Industrial Average (DIA) rose 42.32 points, or 0.2%, to 28,164.00. The blue-chip index traded within a narrow range for most of the day.
The broad S&P 500 Index (SPY) jumped 0.4% to close at 3,153.66. Nine of 11 primary sectors reported gains, with consumer discretionary stocks leading the way. Communication services and health care also outperformed the benchmark.
Meanwhile, the technology-focused Nasdaq Composite Index (QQQ) advanced 0.7% to close at 8,705.17.
A measure of implied volatility known as the CBOE VIX (VXX) was little changed on Wednesday, signaling underlying calm in the markets. The so-called “fear index” traded within a range of 11.44 and 11.67. It would eventually settle at 11.60 on a scale of 1-100 where 20 represents the historic average.
In economic data, U.S. gross domestic product (GDP) expanded 2.1% annually in the third quarter, revised data from the Commerce Department showed. The preliminary estimate showed annual growth of just 1.9%.
Separately, the Commerce Department said durable goods orders rose 0.6% in October, confounding expectations of 0.8% drop.
Meanwhile, initial jobless claims fell by 15,000 to a seasonally adjusted 213,000 for the week ended Nov. 22.
The Final Word: The U.S. stock market will be closed on Thursday for Thanksgiving. Trading activity is expected to be thin on Friday as investors take the long weekend.