Posted: Tuesday, August 26th 2014 at 4:39pm
Another milestone: S&P 500 closes above 2,000
By The Associated Press
It was a big round-number day for the stock market.
The Standard & Poor's 500 index closed a hair above 2,000 points Tuesday, 16 years after it closed above 1,000 points for the first time.
The milestone added to the market's gains from the day before and extended the stock index's record-shattering run this year.
The S&P 500 index, a widely followed barometer of the stock market, has closed at a new high 30 times this year. By this time last year, it had done so 25 times.
The index briefly rose past 2,000 on Monday, but closed just below that level. It still set a record-high close in the process.
"There's perhaps a small psychological boost when you get over such a significant price level," said Cameron Hinds, regional chief investment officer at Wells Fargo Private Bank.
U.S. stocks, in the midst of a five-year rally, have surged in the final weeks of the summer after dipping earlier this month on concerns about geopolitical tensions in Russia and the Middle East.
The latest string of shattered market benchmarks comes as investors cheered new indications that the economy is strengthening, setting the stage for stronger company earnings.
Major U.S. indexes began in positive territory in premarket trading Tuesday. That trend held as investors began to digest the latest economic reports.
The Conference Board said Tuesday that its consumer confidence index rose this month to the highest point in nearly seven years. A separate report showed that orders of durable manufactured goods surged by a record 22.6 percent in July, thanks to a jump in aircraft sales. A third report showed U.S. home prices rose in June, although at a slower pace.
Stocks opened slightly higher and remained in the green the rest of the day. The S&P crossed above 2,000 points early on, and hovered at or above the mark as it approached the close of regular trading.
Moments before the close it dipped below 2,000, then inched up just above.
The S&P 500 rose 2.10 points, or 0.1 percent, to end at 2,000.02. Seven of the 10 sectors in the S&P 500 index gained, led by energy stocks. Utilities declined the most.
The Dow Jones industrial average rose 29.83 points, or 0.2 percent, to 17,106.70. The Nasdaq composite gained 13.29 points, or 0.3 percent, to 4,570.64.
The major U.S. indexes are riding a three-week streak of weekly gains and are up for the year.
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