The S&P 500 Index rose past 2,050 for the first time on Nov. 18, breaching this level to reach a new record.
Major Indices hit new highs
The benchmark group of stocks finished the session at 2,051.80 at 4 p.m. in New York, according to Bloomberg. This involved a 0.5 percent gain for the S&P 500, its largest daily increase since Nov. 5. Other major indices also moved higher, as the Russell 2000 Index of small-cap shares increased 0.5 percent and the Dow Jones Industrial Average rose 0.2 percent to 17,687.82, hitting a new record as well.
Health care shares rise
Appreciating shares of health care companies helped push major U.S. stock indices higher, with UnitedHealth Group Inc. gaining 1.8 percent, enjoying the largest increase for any stock in the Dow, the media outlet reported. Actavis plc. surged 8.7 percent to $269.60, the biggest increase of any company in the S&P 500 Index.
The global specialty pharmaceutical company experienced this sharp rise one day after it agreed to purchase Allergan, Reuters reported. Bullish notes from analysts helped Actavis shares enjoy their rally. Other biotechnology firms enjoyed gains, and shares of Gilead Sciences rose 3.3 percent. Uri Landesman, president of Platinum Partners in New York, commented on the situation.
“A little bit of a risk trade is coming back on, and those are the areas for the M&A,” he stated, according to the news source. “It’s a very, very good environment to buy growth, so I don’t quibble with the notion that there’s going to be more M&A.”
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Economic speculation
Another factor that coincided with stocks enjoying their upward climb was speculation that the U.S. recovery will continue even as economic conditions falter around the world, Bloomberg reported. This view was supported by data indicating that in October, wholesale prices rose unexpectedly.
Investors have been scrutinizing reports on various subjects including inflation and jobs growth to get a better sense of when the Federal Reserve will increase its benchmark interest rates, according to the news source.
Previously, they took a keen interest in the timeline the central bank used to taper its latest round of bond purchases. However, the financial institution decided earlier this fall to end this form of stimulus. Some market participants had warned that eliminating these bond purchases would create serious headwinds for the stock market.
S&P rally continues
However, the S&P 500 has surged 10 percent since its lowest in six months in October as hopes the U.S. recovery will continue grow stronger, according to Bloomberg. This rally has caused the benchmark group of stocks to repeatedly reach all-new highs in 2014.
Investors who want to trade stocks online might benefit from knowing about the sustained rally the S&P 500 has enjoyed over the last several weeks, along with the fact that its ability to reach new records caused it to break past 2,050 on Nov. 18. Market participants who are aware of this information might make better-informed decisions.
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