Wall Street surges to record highs led by tech and financials

Eren Sengezer FXStreet

Boosted by robust gains seen in technology and financial shares major equity indexes in the U.S. jumped to fresh all-time peaks on Wednesday.

On the back of a stronger-than-expected third-quarter earnings report, IBM shares surged sharply to close the day 8.86% higher, lifting the S&P 500 Information Technology Sector (SPLRCT) to 1,053.83, up 3 points, or 0.3%."Today the catalyst is clearly IBM ... which appears to have turned the corner. It gave the Dow the boost to stay over 23,000," Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey, told Reuters.

The Beige Book released by the Federal Reserve today showed that the economic activity in the U.S. expanded at a modest to moderate pace in September through early October. In the meantime, the 10-year US Treasury-bond yield rose nearly 2% on the day, allowing bank stocks to extend their recovery from last week's sharp retreat. The S&P 500 Financials Sector ( SPSY) added 0.5% on the day.

The Dow Jones Industrial Average gained 159.71 points, or 0.69%, to close the day for the first time above the 23K mark at 23,157.6. The S&P 500 added 2.01 points, or 0.08%, to 2,561.37 and the Nasdaq Composite rose 0.86 points, or 0.02%, to 6,624.53.

Headlines from the NA session:

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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