US Investors shifted their focus from politics to profits on Friday and liked what they saw, pushing the Standard & Poor’s (S&P) 500 index further into record territory.
Two days after Congress struck a last-minute deal to keep the US from a devastating default on its debt, investors were bidding up stocks on surprisingly good profits from companies in industries both old and new.
moved from the dysfunction of Washington to the reality of the global economy, and it looks pretty good,” said Ron Florance, the deputy chief investment officer at Wells Fargo Private Bank.
Investors were encouraged by a rebound in Chinese economic growth in the latest quarter.
The rise in stocks follows a budget stand-off in Washington for 16 days which could have forced the government to miss payments on its debt. Congress agreed on Wednesday to fund the government and allow it to borrow through early next year.
The S&P 500 set a record for the second consecutive day. The broad index of 500 companies, up 22 percent this year, added 11.35 points, or 0.7 percent, to a record 1 744.50. The gain this year is the index’s best since 2009, when it began its bull run.
In bond trading, the yield on the 10-year treasury note was unchanged at 2.59 percent. – Sapa-AP