Stock markets ride a new high as Dow extends record growth.
U.S. stocks advanced across the board on Wednesday, as investors switched back to risk-on mode following the successful conclusion of NAFTA 2.0 during the weekend.
All of Wall Street’s major indexes reported gains, with the Dow Jones Industrial Average (NYSEARCA:DIA) notching its second straight record close. The blue-chip average climbed 54.45 points, or 0.2%, to close at 26,828.39.
The broader S&P 500 Index (NYSEARCA:SPY) edged up only slightly to finish at 2,925.51. Five of 11 primary sectors contributed to the advance, with financials gaining 0.8%. Industrials, information technology and energy stocks also put up gains.
A strong performance in tech and communications services lifted the Nasdaq Composite Index (NYSEARCA:QQQ) to higher ground. The benchmark rose 0.3% to 8,025.08.
A measure of implied volatility known as the CBOE VIX (NYSEARCA:VXX) reached its lowest intraday level in nearly two months on Wednesday. The so-called “fear index” bottomed at 11.34 on a scale of 1-100 where 20 represents the historic average. It would alter settle at 11.70, where it was down 3%.
In economic data, U.S. private sector employers added 230,000 workers to payrolls last month, far outpacing estimates calling for 185,000, the ADP Research Institute reported Wednesday. The Department of Labor will release the official nonfarm payrolls report on Friday.
Meanwhile, the Institute for Supply Management’s non-manufacturing purchasing managers’ index (PMI) rose much faster than expected in September. The services gauge climbed to 61.6 from 58.5 the previous month.
The Final Word: Stocks are back on the offensive as pro-growth optimism continues to invigorate investor sentiment. If history is any indication, this trend will intensify over the next three months.