The S&P 500 and Nasdaq Composite Indexes set new records on Thursday after a tough trading session.
The major stock indices opened slightly higher but gave up those gains by midday and were trading lower for most of the afternoon. A wave of buying activity helped lift the S&P 500 and Nasdaq from their last-minute trading lows. Technology stocks led the recovery, helped by the healthcare and telecommunications sectors.
The broad index added 6.50 points, or 0.2%, to 3916.38, its highest close ever, while the Nasdaq index rose 53.24 points, or 0.4%, to 14025.77, a record high as well. The shift in the late session was not enough to keep the Dow Jones Industrial Average out of the red. The leading index closed down 7.10 points, or less than 0.1%, at 31,430.70.
He did not show any significant incentives to support these moves. But some investors have indicated an ongoing debate over whether the valuations are stretched and appear to be playing out across the market.
On the one hand, traditional metrics like price / earnings ratios indicate that stocks are trading near all-time highs, something potential investors generally fear as this indicates that future returns will be muted. On the other hand, many investors argue that this picture does not take into account the effect of lower interest rates, which tend to increase future profits for companies.
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