US: S&P 500, Nasdaq end at records as tech shares gain

[NEW YORK] The Nasdaq and S&P 500 finished at fresh records on Monday as large tech companies rallied ahead of earnings later in the week from Amazon, Facebook and other giants.

The tech-rich Nasdaq Composite Index led major indices, winning 0.9 per cent to close at 14,138.77 and overtake its previous record.

The broad-based S&P 500 gained 0.2 per cent to end the day at 4,187.64, narrowly topping its all-time high, while the Dow Jones Industrial Average shed 0.2 per cent to 33,981.57.

Investors seemed unconcerned by a White House announcement confirming President Joe Biden will propose an increase in capital gains taxes on people earning more than US$1 million per-year to pay for his child care and education plan expected to be announced this week.

That was a change from last week when stocks tumbled on reports saying the president plans to increase the tax rate on profits from stock transactions to 39.6 per cent from its current 20 per cent level.

The only economic data released on Monday was a disappointing 0.5 per cent increase in orders of big-ticket manufactured goods in March, largely held down by canceled Boeing orders.

Art Hogan, chief market strategist at National Securities, characterised Monday's session as a "wait-and-see" session ahead of what is expected to be a busy week in economic news.

"The action reflected that all of the catalysts are in front of us and none of them are today," Mr Hogan said.

The Federal Reserve begins its two-day policy meeting on Tuesday but is not expected to change its easy-money policies.

Mr Biden is due to address Congress late on Wednesday and outline his economic programme.

After the closing bell, Tesla announced a big jump in profits to US$438 million, compared with US$16 million in the year-ago period.

The electric carmaker ended with a 1.2 per cent gain but was down in after hours trading.

AFP