The Dow and broader U.S. stock market forged new highs Friday, building off a multi-session rally that was fueled by affirmations the Federal Reserve will kick-start a new era of monetary easing later this month.
Dow Extends Record Rally; S&P 500, Nasdaq Follow
All of Wall Street’s major averages recorded record highs Friday, mirroring a strong pre-market for Dow futures. The Dow Jones Industrial Average surged 187.26 points, or 0.7%, to 27,275.34. The blue-chip index is on track for its second consecutive record close.
The broad S&P 500 Index of large-cap stocks advanced 0.3% to 3,009.12 and was on track for its first close above 3,000 in history. Eight of 11 primary sectors reported gains, led by industrials and consumer discretionary. On the opposite side of the ledger, health care declined more than 1%.
Meanwhile, the technology-laden Nasdaq Composite Index jumped 0.5% to 8,235.64.
The CBOE Volatility Index, commonly known as the VIX, was on track for its third consecutive drop Friday. The so-called “investor fear index” fell 2.7% to 12.58 on a scale of 1-100 where 20-25 represents the historic average.
Equities have resumed their record-setting pace on expectations that the Federal Reserve will lower interest rates to bolster a lagging economy. Fed chief Jerome Powell hammered home those expectations over two days of testimony before the Senate and House of Representatives.
“Since our May meeting, however,