Dow Reaches Record High While Tech Stocks Weigh On Recovery
The Dow Jones Industrial Average hit a record high Monday, while tech-sector losses weighed on the S&P 500 and Nasdaq Composite in another typically volatile day on Wall Street.
The Dow gained a modest 0.16% to reach its 23rd record close of the year at 41,240 points. This one comes after a recent correction as the markets try to shift into recovery mode.
But the Nasdaq Composite fell 0.85%, and the S&P 500 slipped 0.32% to 5,616, still well within reach of its recently set closing high of 5,667 on July 16. Yet the overall signs are that "the market is in a pretty healthy place," according to CNBC.
"Good is good again. Stock markets have regained their footing and retraced toward all-time highs," Morgan Stanley Wealth Management said in a note Monday.
"A reversal in the negative correlation between market moves and economic news was critical to the stabilization" of the U.S. stock market, the note added.
Morgan Stanley notes the recent run of encouraging U.S. economic data and positive messaging from Federal Reserve chair Jerome Powell indicating the start of rate cuts in September. Investors are starting to show confidence that the threat of a recession is fading.
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