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All three major US stock indexes scored record closing highs on Wednesday as technology shares rallied after upbeat results from Salesforce and as comments by Federal Reserve Chair Jerome Powell gave a late boost to the market.
The Dow Jones Industrial Average climbed 308 points, or 0.7%, to 45,014.04. The S&P 500 gained 3 0.6% to end at 6,086.49 points, while the Nasdaq rose 254 points, or 1.29%, to 19,735.12.
The economy is stronger than it appeared in September when the central bank began cutting interest rates, allowing policymakers to potentially be a little more cautious in reducing rates further, Powell said at a New York Times event.
Powell’s comments overall along with a Beige Book report added to the upbeat tone in the market, said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.
The Fed said in a summary of surveys and interviews from across the country known as the “Beige Book” that US economic activity has expanded slightly in most regions since early October.
Powell “was very upbeat about economy, and he said we’re making progress on inflation… that’s good news for stocks in general,” Cardillo said.
Investors expect a third consecutive interest-rate cut at the central bank’s Dec. 17-18 meeting.
Salesforce jumped to an all-time intraday high after the enterprise cloud company beat Street estimates for third-quarter revenue and raised the lower end of its annual revenue forecast.
Other cloud companies also advanced, and the S&P 500 technology index hit a record high.
Also in the tech space, Marvell Technology rallied after the chipmaker forecast fourth-quarter revenue above analyst estimates. Other chipmaker stocks rose as well.
Investors await monthly US jobs data due on Friday and jobless claims data on Thursday.
Earlier, US private payrolls data showed a modest increase in November.
Separately, a survey from the Institute for Supply Management showed US services sector activity slowed in November after big gains in recent months. The final reading of the S&P services survey was revised lower to 56.1.
“Recent economic data has pretty much confirmed the Fed will cut rates in December,” said Sam Stovall, chief investment strategist at CFRA Research in New York.
Friday’s jobs report would be “like the granddaddy of employment reports this week,” he said.
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