Nasdaq hits record high close due to tech rally
The Nasdaq surged to a record high close on Monday, while the S&P 500 approached its own record level, with both indexes lifted by Nvidia and other technology stocks amid declining trading volumes and lingering concerns over a U.S. coronavirus stimulus bill.
The broader market index gained 0.3% to close at 3,381.99. The Nasdaq Composite advanced 1% to 11,129.73, hitting an all-time high. The Dow Jones Industrial Average lagged, falling 85 points, or about 0.3%, to close at 27,844.91.
Despite Monday’s gains, the S&P 500 failed to close above its Feb. 19 record closing high of 3,386.15. The index briefly traded above that level earlier in the day. It also flirted with that level for most of last week.
Goldman sees S&P 500 surging to 3,600 by end-2020
A potential COVID-19 vaccine and bets of an economic rebound in 2021 will lift the S&P 500 to 3,600 by the end of the year, Goldman Sachs said, bumping its target for the index by 20% as it trades within striking distance of a record high.
With U.S. gross domestic product plunging at its steepest pace since the Great Depression in the second quarter, Goldman said investors were more focused on a recovery in 2021, when it expects GDP to rise by 6.4% and earnings for S&P 500 companies to jump 30%.
Analysts polled by Refinitiv expect earnings for the companies to rise 28.3% next year following a 20.3% plunge in 2020.
Reference: CNBC, Reuters
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