US: Stocks mixed, Nasdaq closes above 20,000 for first time

US STOCKS had a mixed session on Wednesday, with a rally in Google’s parent company Alphabet spurring the tech-rich Nasdaq to end the day above 20,000 for the first time.

The Dow Jones Industrial Average slipped 0.2 per cent to close at 44,148.56, while the broad-based S&P 500 closed up 0.8 per cent at 6,084.19.

The Nasdaq Composite Index was the day’s big winner, jumping 1.8 per cent to close at a new record of 20,34.89 after Alphabet reported it had made a breakthrough in quantum computing.

The news sent the firm’s share price soaring, with its class A shares closing up 5.5 per cent.

Investors were also digesting the news that consumer inflation ticked higher last month, largely in line with expectations.

“The investors are reacting positively to the latest inflation data for two reasons,” Adam Sarhan from 50 Park Investments told AFP.

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“Number one, it gives the Fed more room to continue with easy money, cutting rates,” he said. “And then number two, it allows more room for the economy to grow without the threat of inflation picking up.”

“That’s good for earnings, that’s good for stocks,” he added. AFP