Surging tech megacaps power Nasdaq to another peak
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A surge among tech megacaps powered the Nasdaq to another record high during early trading on Wall Street today.
The US’s tech-heavy benchmark has since fallen back from its fresh peak, but is still up 0.65 per cent to 15.358.32 points during mid-morning exchanges.
The blue-chip S&P 500 jumped 0.18 per cent to 4,531.01 points as well, while the Dow Jones slipped 0.09 per cent to 35,328.99 points.
Residual effects of the Fed signalling it will gradually wind down its stimulus measures last Friday are still driving gains among tech stocks as they tend to benefit from ulta-accommodative monetary policy measures.
“The focus here is naturally on the Fed and, as Powell said on Friday, while tapering may begin later in the year, it will be done cautiously and is in no way indicative of when rates will rise.
“Against this backdrop, I don’t think investors are as anxious about a policy misstep as they could be because it seems far less likely than it has been in the past.”
Yields on 10-year Treasuries inched 0.012 per cent to 1.314 per cent.
FTSE 100 soars while mid-caps hit fresh record high again
London’s FTSE 100 soared during afternoon exchanges today, trailed by its junior rival reaching multiple record highs throughout the day.
The capital’s premier index added 0.46 per cent to hit 7,152.43 points during late afternoon trading.
The domestically-focused mid-cap FTSE 250 touched several record highs during opening trading, only to pull back slightly. The index was up 0.54 per cent to 24,233.09 points heading into the final hours of exchanges.
Gains on the mid-cap index were driven by travel stocks and financials, with the likes of IG Group, Ninety One and Trainline all up more than 3.9 per cent.
Meanwhile, market sentiment received a boost from data released by Nationwide this morning showing an unexpected jump in UK house prices in August. The country’s property market is often seen as a bellwether for its economic strength.
Latest data from IHS Markit also showed the UK’s manufacturing industry continued its recovery from the damage inflicted on it by the Covid crisis, albeit at a slower pace in August.
The pound gained ground on the dollar, strengthening 0.23 per cent to buy $1.3786. AIM shares shot up 0.82 per cent to 1,303.59 points heading into the final hours of trading.
Winners and losers
On the blue-chip index, gains were driven by consumer-focused firms, with takeaway delivery company Just Eat Takeaway.com climbing over seven per cent to 7,051p.
Middle class favourite Ocado added 3.38 per cent to reach 2,081p, while JD Sports, Next and Burberry all gained more than 1.90 per cent.
Industrials lined the biggest losers table, driven lower by jitters on whether commodity prices could start to fall back from record increases.
Chilean miner Antofagasta slipped 1.99 per cent to 1,427p, engineer Weir Group dipped 1.86 per cent to 1,719p and miner Evraz slid 1.56 per cent to 581.20p.
Insurer Prudential had the most shaved off from its share price today, dipping 1.25 per cent to drop to 1,496p.
Around the world
Asian shares posted a robust set of performances in overnight trading, with the region’s three major benchmarks all closing up sharply.
Japan’s Nikkei shot up 1.29 per cent to 28.451.02 points, while China’s CSI 300 gained 1.33 per cent to hit 4,869.46 points.
Hong Kong’s Hang Seng capped a great session for the region, adding 0.58 per cent to reach 26,028.29 points.
The gains come despite grim China manufacturing data released at the start of the week.
Jeffrey Halley, senior market analyst, Asia Pacific at OANDA, said: “The elephant in the room for the long North Asia, Short ASEAN view is China.”
“This morning, the Caixin Manufacturing PMI followed yesterday’s official number South, falling under 50.00 to 59.20, contractionary territory.”
“That rounds out a grim week for China’s PMIs as Covid-19 lockdowns and the same supply chain challenges the rest of the world is experiencing erode economic performance.”