US: Stock indices end at fresh records, extending rally

[NEW YORK] Wall Street stock indices finished at fresh records on Monday, extending a recent rally ahead of key economic data and central bank announcements later in the week.

The Dow Jones Industrial Average finished with a 0.3 per cent gain at 35,913.84.

The broad-based S&P 500 won 0.2 per cent to close at 4,613.67, while the tech-rich Nasdaq Composite Index jumped 0.6 per cent to 15,595.91.

The new all-time highs came as investors continue to applaud corporate earnings that have largely surpassed expectations.

This week's calendar includes earnings from Pfizer, Marriott International and others, as well as the October US jobs report, which is expected to show a hiring surge.

Investors also will be watching the Federal Reserve's two-day meeting which is expected to conclude with an announcement on Wednesday that the central bank will begin pulling back on its pandemic monetary stimulus.

"There is likely a sense of relief that the stock market managed its way favorably through last week's earnings results, which featured reports from the biggest companies," said Briefing.com analyst Patrick O'Hare, adding that stocks are prospering from "a fear of missing out on further gains."

A report from the Institute for Supply Management showed continued expansion in the manufacturing industry, even though growth was constrained by ongoing supply snarls connected to the pandemic including high employee turnover and shortages of needed materials.

Investors also are monitoring the debate on Capitol Hill, where Senator Joe Manchin, a West Virginia Democrat, put up the latest roadblock to President Joe Biden's ambitious spending agenda.

Manchin criticised House Democrats for tying passage of a bipartisan infrastructure bill to Biden's larger US$1.75 trillion social welfare package.

AFP