Dow rises to a fresh record close

December 5, 2016 9:39 pm Published by

Dow rises to a fresh record close

  • 5 December 2016
  • From the section Business

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(Close): Rising bank stocks and encouraging economic data helped push the Dow Jones Industrial Average to a new record.

The Dow rose 45 points, or 0.2%, to 19,216, with shares in Goldman Sachs up 2.3% and JP Morgan rising 2%.

Nike was among the top risers on the Dow – up 2.7% – after HSBC raised its rating on the company’s shares.

Confidence was boosted by data showing activity in the US services sector rose to a one-year high in November.

Many economists expect that the strengthening US economy will prompt the US Federal Reserve to raise interest rates, when it meets next week.

“We have a situation where the Fed is probably going to raise rates next week and this time raising rates is being viewed as a positive, mainly because of its impact on the financial stocks, which are all doing quite well today,” said Peter Tuz, president of Chase Investment Counsel.

‘Scrambling’ for shares

The wider S&P 500 index was up 12 points, or 0.6%, at 2,204, while the Nasdaq rose 53 points to 5,308.

US shares have been gaining ground since the election on 8 November, on hopes that polices under a Donald Trump administration will boost the economy.

“A lot of people were negative going into the election, or cautious, so now they’re scrambling year-end to own stocks,” said Alan Lancz, president of investment advisory firm Alan B Lancz & Associates.

US markets followed the lead of most of the European indexes by shrugging off the results of Italy’s referendum on changes to the constitution.

“We’re back in a rally mode,” said Art Hogan, chief market strategist at Wunderlich Securities.

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This post was written by FSB News