NEW YORK – The Dow and S&P 500 edged to fresh records on Sept 24, as investors shrugged off lacklustre consumer data while welcoming aggressive stimulus measures announced by China.
The Conference Board’s consumer confidence index fell sharply to 98.7 in September from a revised 105.6 in August, with the drop attributed to concerns about the labour market.
But investors cheered announcements that China will cut the reserve requirement ratio, which dictates the amount of cash banks must hold in reserve, and lower the interest rate of existing mortgage loans.
The Dow Jones Industrial Average gained 0.2 per cent to 42,208.22, its fourth straight record.
The broad-based S&P 500 advanced 0.3 per cent to 5,732.93, while the tech-rich Nasdaq Composite Index jumped 0.6 per cent to 18,074.52.
“Some of the negativity in confidence was probably overshadowed by the monetary moves in Beijing,” said Mr Jack Ablin, chief investment officer of Cresset Capital Management, adding that investors also view the consumer data as somewhat backward-looking.
The moves by Beijing are the latest stimulative measure by central bankers following interest rate cuts by the Federal Reserve, the European Central Bank and others.
Among individual companies, Visa slumped 5.4 per cent after the US Department of Justice filed an antitrust lawsuit alleging the payments giant illegally maintains a monopoly over debit card networks in the United States.
Boeing shed 0.3 per cent after leaders of a Seattle machinist union slammed the aviation giant’s latest contract proposal, likely extending a labour strike. AFP