The Nasdaq Composite and the S & P 500 posted record highs as strong gains and healthy growth in gross domestic product broadly boosted equities.
Boosted the rise in benchmark stocks with a banner day after a leap in sales and a buyback in the last quarter. Market value rose by a sizeable $ 79 billion, up $ 109.28, or 9.6%, to $ 1,245.22. This was the best win in percentage of one-day gains in years and the largest dollar gain the company has ever made.
Alphabet increased its market capitalization to more than $ 860 billion, according to FactSet, adding approximately
in just one day. Alphabet's market capitalization was higher than the individual market values of all companies except 72 in the S & P 500. The company also outperformed options traders' forecasts for a postponement.
Analysts said the strength of the US consumer, reflected in some of the latest financial news and economic data, as well as the expectation that the Federal Reserve will soon cut interest rates, helped spur stocks up. The slowdown in trade tension has also helped boost stocks this week after it became known that the US negotiators were traveling to Shanghai to resume official trade negotiations.
Data released early Friday showed that gross domestic product grew at an annual rate of 2.1
On Friday, the S & P 500 rose 22.19 points or 0.7% to 3025.86, reaching its 13th annual record. The tech-heavy Nasdaq Composite gained 91.67 points, or 1.1%, to 8330.21 points, its tenth record of 2019. The Dow Jones Industrial Average rose 51.47 points or 0.2% to 27192.45 points.
All three major US indices closed the week with gains, the S & P 1.7%, the Dow Jones 0.1% and the Nasdaq 2.3%.
The communications services sector outperformed the top S & P 500 groups on Friday with a gain of more than 3% and an increase in Twitter and Alphabet, the biggest winners. The Twitter share gained after posting strong user and revenue growth in the second quarter. The social media company's stock rose $ 3.40, or 8.9%, to $ 41.52.
In this winning season investors looked at technical heavyweights
have helped drive the record-breaking run of the S & P 500 this year. Big money managers have increased their stakes in companies that were among the best.
So far, 2019 technology companies have been winners as investors look for growth. The S & P 500 technology sector has risen 33% since the end of 2018, outperforming the overall index by 21% over the same period, finishing fourth in the S & P 500, behind Microsoft, Apple and Amazon. His jump Friday came after being the worst technology company, worth more than $ 100 billion this year and included in its earnings report.
As market volatility subsides and stocks continue to rise, some analysts and investors expect higher profits for equities. According to analysts, Friday's data underscored the strength of the US economy. Now many are preparing for the Fed to cut interest rates and provide a boost. The central bank will meet next week.
"I think the market has continued to improve overall by the end of the year," said Bruce Bittles, chief investment strategist at Robert W. Baird & Co.
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