- The Dow jumped to a record high for a second straight day, but the S&P 500 struggled to tread water.
- Strong economic data beat estimates and quieted recession fears.
- The Dow received a particular boost from Boeing.
The US economy passed a critical test with flying colors, sending the Dow deeper into uncharted waters above the 27,500 level.
Shortly before the closing bell, the Dow Jones Industrial Average had rallied 88.26 points or 0.31%, lifting the index to 27,550.37.
The Dow prepares to close at a new all-time high for a second consecutive day. | Source: Yahoo Finance
The Nasdaq and S&P 500 trailed the Dow, rising 0.16% and 0.03%.
Gold and silver suffered severe corrections. The gold price dropped more than 1.65% to $1,485, while silver’s 2.5% retrace reduced its value to $17.61. Platinum and palladium also trended lower, though copper managed to rise more than 1.2%.
Oil prices also rose more than 1%, responding positively to the news that Washington and Beijing might begin unwinding their tangled web of retaliatory tariffs. The US and China are the world’s two largest consumers of oil.
US Economy Passes Critical Test With Flying Colors
Today’s uneven market bounce didn’t earn a new self-congratulatory tweet from Donald Trump, but the president did retweet his post from yesterday touting the Dow’s race to a new zenith.
Perhaps that praise should have gone to the US economy, which survived a crucial test this morning. The ISM Non-Manufacturing Index, a leading indicator of the health of the services sector, beat economist estimates by a substantial margin, printing a 54.7 versus an expected 53.5.
Services account for around 80% of the overall economy,