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US: Stocks back in rally mode, Dow hits new record

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[NEW YORK] The Dow finished at a fresh record on Monday as US stocks powered higher following a report showing strong growth in the services sector.

"We're back in a rally mode," said Art Hogan, chief market strategist at Wunderlich Securities.

Data from the Institute for Supply Management showed the US non-manufacturing sector accelerated in November at the fastest pace in over a year.

The Dow Jones Industrial Average advanced 0.2 per cent to 19,216.24, about 25 points above the record set Thursday.

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The broad-based S&P 500 rose 0.6 per cent to 2,204.71, while the tech-rich Nasdaq Composite Index gained 1.0 per cent to 5,308.89.

US stocks have repeatedly hit new records since the November 8 election on optimism about the possibility for pro-growth policies out of Washington.

Banking shares continued to rise amid expectations the Federal Reserve will hike interest rates. Dow members Goldman Sachs added 2.3 per cent and JPMorgan Chase rose 2.0 per cent.

Technology stocks, which have been volatile since the election, had a good day. Facebook increased 1.8 per cent, Google parent Alphabet 1.6 per cent and Adobe Systems 2.2 per cent.

Other winners included technology stocks and travel shares.