The index, which represents the top 30 most valuable in the US, hit its 24th record high for the year in trading yesterday. Though it was only a small 0.1% increase that inched its way to this achievement.
Why did it do this?
The main drivers were financial and technology stocks. Goldman Sachs [NYSE:GS] and JP Morgan [NYSE:JPM] were up 1.3% and 0.6% respectively.
Technology stocks are the best performing sector this year and market heavyweight Apple’s [NASDAQ:AAPL] overnight rise of 1.4% was a key factor in the record highs.
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What now for the US stock market?
With second quarter earnings season kicking off today, tangible profits will have to be up to, or above, analyst expectations to maintain the current positive market sentiment.
With stock market valuations above historical norms, any downside surprises could result in some sharp short-term falls.
On the positive side, President Donald Trump has kept plans to reduce taxes and implement wide scale infrastructure projects up his sleeve so any falls may be temporary. Though with his increasing political troubles making daily headlines, I’m not sure this is a strategy you want to rely on too much.
It will be an interesting week ahead.