The Dow Jones closed at another record high on Tuesday, driven by rising shares of energy companies after cooling across parts of the United States and growing investor optimism about the economic recovery as cases of Covid-19 infection continue to decline.
The Dow Jones Industrial Average rose 0.20%, which is 62 points. During the day, it even grew by about 150 points and reached a record value of 31,608.63. The value of the S&P 500 fell by 0.08%, but also climbed to a record intraday. The Nasdaq Composite fell 0.34%.
Shares of energy companies jumped more than 2% as “severe winter hit most of the country and disruptions in oil supplies led US oil prices to set above $ 60 a barrel for the first time in more than a year,” Stifel said.
Oil companies Occidental Petroleum, Apache and Marathon Oil grew by more than 6%.
Bank shares continue to benefit from higher US government bond yields due to declining Covid-19 infections and increased vaccinations. The yield on the 10-year US bond reached 1.3% for the first time since February 27.
Bank of America and JPMorgan Chase grew by more than 2% and Wells Fargo & Company even by more than 3%.
Higher interest rates are considered a “blessing” of banks, which increases the net interest margin – the difference between the interest income generated by banks and the amount of interest paid.
Rising expectations for another round of fiscal stimulus, which could include $ 14 billion in funding to support the aviation industry, have boosted airlines, with United Airlines growing by more than 3%.
Shares of technology companies:
Alphabet reached a record intraday high as the company performed better than expected quarterly.
Palantir Technologies was in the spotlight as the company posted a loss in the fourth quarter, causing the stock price to fall by more than 13%. However, the decline occurred after the shares of the analytical company rose by more than 200% since the October lows.
NVIDIA’s plans to acquire chip maker ARM Holdings in a $ 40 billion deal have reached a dead end as the Federal Trade Commission allegedly examines the deal after protests by ARM licensees, including Google, Qualcomm and Microsoft.