The S&P 500 closed at a record high today after disappointing economic data bolstered expectations that an interest rate hike is likely to come only later in the year.
Traders warned that below-average volume in recent sessions suggests that not all of Wall Street may be confident in the market’s gains.
As the quarterly earnings reporting season draws to a close, volume on US stock markets has been below the month-to-date average for several sessions. About 5.6 billion shares changed hands on US exchanges, below the 6.3 billion average this month, according to BATS Global Markets.
Data showed that jobless claims rose more than expected last week, although the underlying trend continued to point to a rapidly tightening labor market.
Another report showed a surprise decline in home resales in April and persistent weakness in manufacturing in May.
Federal Reserve officials have all but ruled out a rate hike next month. Investors now await Fed Chair Janet Yellen’s speech tomorrow for new clues about when the central bank will begin raising interest rates for the first time since 2006.
The S&P 500 gained 4.97 points, or 0.23 percent, to end at 2,130.82 points, barely beating its previous record close of 2,129.2 from Monday. The Dow Jones industrial average was essentially flat, ending up 0.34 point at 18,285.74. The Nasdaq Composite rose 19.05 points, or 0.38 percent, to 5,090.79, just short of its record close of 5,092.08 on April 24.
In Europe, share indexes closed mostly ahead, recovering from session lows after data pointed to contrasting fortunes in major euro zone economies.
German private-sector growth slowed again in May, and France extended its timid recovery. The pan-European FTSEurofirst 300 index ended up 0.4 percent after having traded as much as 0.4 percent lower.
France’s CAC was up 0.3 percent. Euro zone leaders were scheduled to meet in Latvia, with Greek premier Alexis Tsipras hoping to secure a broad outline of a cash-for-reforms deal to stave off a default. But German Finance Minister Wolfgang Schaeuble told reporters the Greek government’s optimism about clinching a deal in the coming days was not justified and that he could not rule out it becoming insolvent.
Meanwhile, Japan’s Nikkei share average ended flat on Thursday after hitting a fresh 15-year high as investors took profits ahead of the Bank Of Japan’s two-day policy meeting on Friday.
The Nikkei 225 ended up 0.03 percent at 20,202.87, marginally higher. The index has risen for five straight days, the longest daily winning streak in three months.
The broader Topix gained 0.2 percent to 1,646.80 and the JPX-Nikkei Index 400 also added 0.2 percent to 14,892.69.
Source: Buenos Aires Herald