Economist's Insights

Today’s Trading Activity – Stocks Hit New Records, Led by Strength in Tech and a Jump in Oil

Jul 19, 2017

The technology sector continued to shine Wednesday as all three major equity indices climbed to new all-time highs. The Nasdaq’s 0.6% gain was the day’s best but the S&P added 0.5% in a close second place finish. The Dow gained 0.3%. While tech’s strength was clear in the Nasdaq’s outperformance, the underlying firmness was broad-based. All 11 of the S&P sectors closed in positive territory. The energy sector gained 1.4% to lead all sectors after crude prices gained more than 1.5%. Crude prices jumped after the EIA reported a larger-than-expected drawdown in crude inventories of 4.7MM barrels. Gasoline inventories also dropped last week, with the 4.4MM barrel decline the biggest since the week ended March 3. U.S. crude closed at $47.14, the highest level in six weeks. The Dollar gained and Treasury yields traded in a tight intraday range with the 2-year yield higher by 0.8 bps at 1.36% and the 10-year yield 1.1 bps higher at 2.27%.