Finance

S&P, Dow Hit Records As Growth Bets Boost Wall Street

| by Katie Landoll
A calculator and pair of classes sit on a stack of spreadsheetsA calculator and pair of classes sit on a stack of spreadsheets

U.S. stocks have surged to record highs for the first time this year.

USA Today reports that all three major market indexes gained 0.7 percent each on June 12, with the Dow industrial average and the S&P 500 breaking their 2015 record highs. The Nasdaq composite, while still far below record levels, was in the black for the first time this year.

The growth ends a 14-month period of stagnation and losses in global markets.

Reuters reports that the strongest gains came from sectors like technology, materials, and energy.

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The gains follow an encouraging June jobs gains report and increased political stability. According to CNBC, the growth comes as fears about political turbulence in the U.K. and Japan are dying down.  

Global markets plunged after U.K. citizens voted to exit the European Union at the end of June.

According to the Washington Post, the new records come a day after the selection of Theresa May as Britain’s new Prime Minister. May officially opposed Brexit, and her appointment has eased fears that the change could destabilize the British market.

Since the post-Brexit selloff, CNBC says, markets have rallied, posting nearly a year’s average growth in a matter of weeks.

“I think the things that people were worried about… sort of faded into the background,” said Greg Zappin, managing director at Penn Mutual Asset management. He told CNBC, “You have a lot of things conspiring to make this a very benign investing environment.”

Maris Ogg, president of Tower Bridge Advisors, warned that post-Brexit instability may not be over.

“I think the fears of Brexit have subsided, but I think that’s premature,” she told CNBC. “I don’t think this will go away.”

Sources: Reuters, USA Today, CNBC, Washington Post / ​Photo credit: Ken Teegardin/​Flickr

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