US: Nasdaq ends at fresh record as tech leads stocks up

[NEW YORK] The Nasdaq powered to a fresh record on Monday, lifted in part by new technology announcements from Apple as investors continue to weigh increased coronavirus cases against lofty stimulus measures.

The Dow Jones Industrial Average gained 0.6 per cent to 26,024.96 following a choppy session.

The broad-based S&P 500 climbed 0.7 per cent to 3,117.86, while the tech-rich Nasdaq Composite Index jumped 1.1 per cent to 10,056.47.

Larger tech companies were generally higher, especially Apple, which piled on 2.6 per cent as it announced that it would build its own chips for its Mac computers.

Chief executive Tim Cook said the move represents "a huge leap forward for the Mac," which would get a more powerful and energy-efficient system that operates more like Apple's mobile devices.

Investors have been monitoring significant increases in Covid-19 cases in many states, a dynamic that has added volatility in recent sessions.

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On Monday, Texas Governor Greg Abbott said the rate of increases in the state was "unacceptable" as he promised a crackdown of bars and other places where crowds have gathered, the Texas Tribune reported.

But investors largely shrugged off these worries on Monday, which came as New York City moved to a new phase of reopening after suffering the worst Covid-19 crisis in the country earlier this spring.

Among individual stocks, American Airlines slid 6.8 per cent as it announced plans to raise US$3.5 billion in new financing, an initiative that includes new debt facilities and bonds.

American, which already carries more debt than leading competitors, needs the funds to cover expenses amid a lengthy downturn due to coronavirus shutdowns.

AFP