Communication services stocks push Wall Street higher
Wall Street rose on Thursday, helped by high-flying shares of Alphabet and Netflix, as well as the U.S. Federal Reserve`s confidence in the strength of the economy after it raised rates for the third time this year.
Ten out of 11 sectors rose, with the S&P 500 communication services index, recently renamed and reconstituted with Facebook
Alphabet added 1.72 percent and Netflix climbed 0.85 percent, both helping lift the S&P 500.
As well as raising interest rates on Wednesday, the Fed left its monetary policy outlook for the coming years largely unchanged. Stocks closed lower after the rate hike, but on Thursday, some investors refocused on the central bank`s confidence in the economy`s growth.
"The Fed`s statement is essentially a green light for the economy. It`s a confirmation that the U.S. economy is the best game in town for global investors," said Jeffrey Kravetz, regional investment director at the Private Client Reserve of U.S. Bank.
Adding to feel-good sentiment was data showing economic growth accelerated in the second quarter at its fastest pace in nearly four years as previously estimated.
Amazon.com`s gain followed upbeat comments from brokerage Stifel about the company`s retail, cloud, and advertising businesses. The online retailer is set to open a brick-and-mortar store in New York City.
Starting on Monday, the telecommunications sector was renamed "communication services" and reconstituted with major internet and media companies alongside AT&T
At 2:16 p.m. ET, the Dow Jones Industrial Average <.dji> was up 0.42 percent at 26,496.59 points, while the S&P 500 <.spx> had gained 0.50 percent to 2,920.45.
The Nasdaq Composite <.ixic> added 0.85 percent to 8,058.35.
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Advancing issues outnumbered declining ones on the NYSE by a 1.47-to-1 ratio; on Nasdaq, a 1.17-to-1 ratio favoured advancers.
The S&P 500 posted 16 new 52-week highs and 9 new lows; the Nasdaq Composite recorded 50 new highs and 52 new lows.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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