The rally in the technology sector led the indexes Nasdaq Composite and S&P 500 to new record highs. Among the best-performing companies during the trading session on Wednesday are those of Amazon, Alphabet and Apple. The markets have also been boosted by the resumption of trade talks between the US and Canada.
The technology index Nasdaq Composite reported an increase of almost 1% to a level of 8,109.69 points.
In turn, the broad index S&P 500 rose by 0.57% to 2,914.04 points, crossing the 2,900 point for the first time. The shares in the technology sector of the measure rose 1%.
The blue-chip index Dow Jones Industrial Average rose by 0.23% to 26,124.57 points. The price of Apple stocks jumped by 1.5% to a record high.
In turn, Amazon’s shares rose by 3.4% to a new record after Morgan Stanley raised its forecast for their price, predicting a company’s value of 1.2 trillion USD. According to analysts, Amazon’s advertising, subscriptions and cloud business will result in “higher profitability and ongoing upward revision of the rating”.
At the same time, Alphabet’s shares rose by more than 1.5% after Morgan Stanley also increased their target value, making it the highest on Wall Street. The analysts point to Waymo, the company’s unmanned vehicle unit, as the major engine of the stock.
In addition to the technology sector, the US-Canada Negotiations on the NAFTA have contributed to the good mood of US markets. Earlier this week, the US and Mexico announced they have already reached a bilateral trade deal.
Earlier today, the US President Donald Trump said talks with Canada are going well, expressing optimism that the two countries will make a deal this week.
Previously, Canadian Prime Minister Justin Trudeau also said the deadline for Friday is fully feasible. After the news, the Canadian dollar rose slightly against the US currency, succeeding in erasing its lag from earlier.
The indexes S&P 500 and Nasdaq also reached new records after the stock market session on Tuesday, largely due to the breakthrough in the US-Mexico talks.
Meanwhile, the US Department of Commerce earlier reported that the country’s economy grew at an annual rate of 4.2% in the second quarter of the year – its fastest growing nearly four years.
As far as the price of oil is concerned, it continues its upward trend. The futures on US light crude WTI rose by 1.74% to 69.72 USD per barrel. The Brent variety also rose by 1.84% to 77.35 USD per barrel.