The S&P500 index closed to near record highs on Tuesday with a rally in tech stocks supported by Amazon and Microsoft.
The S&P 500 index rose 0.28 percent up around 7 percent in 2018.
Amazon.com the Internet retail and infrastructure giant led the lead on the S&P500 gaining 0.80 percent.
Microsoft climbed 0.69 percent.
Google’s, Alphabet gained 1.47 percent.
Senior investment strategist at BNY Mellon Investment Management in New York, Liz Young reportedly said that the momentum may go on for some time just as long as there are no corporate blow ups and strong
After the sell-off in February, the Nasdaq has recovered faster helped by the rally in tech stocks. While the 10 year U.S. Treasury higher yields on the financial sector has buoyed bank stocks rising 0.48 percent.
Chief investment officer at Independent Advisor Alliance in Charlotte, North Caroline, Chris Zaccarelli said the rallies in financials specifically with the bond yields higher on the 10-year Treasury note is due to financials and the bond market trading.
New reports that Elon Musk, Chief Executive officer at Tesla was considering on going private helped shares in the electric car maker to jump 10.99 percent.
Data on S&P500 companies for second-quarter reporting, shows that 79 percent of companies have beaten expectations and will be the highest on record if the rate holds since the first quarter of 1994.
Look, have you considered how you can actually use this to your advantage?
Let me explain……………….
Trading CFDs (contract for difference) on the S&P 500 will give you exposure to 500 of the largest companies.
The best part is, that with Plus500 forex/CFD broker you will discover that traders get a complete package that will help boost your portfolio with profitable trades. With a leverage of up to 1:100, no commissions, tight spreads and fast and reliable order execution.
That’s not all……………..
Their advanced tools and features give you greater control on your account with stop limit/stop loss, guaranteed stops and negative balance protection. All of these can help to save you a considerable amount of money.
So how does trading CFDs on the S&P 500 normally work?
Assuming you purchase the S&P 500 Index with Plus500 CFDs the price of the S&P 500 index will mirror the price that is trading in the USA stock exchanges.
With the leverage of 1:100 at Plus500 you can make good use if your investment and you are able to widen the spread a bit. On the upside, Plus500 do not charge any commissions for the trade.
A watch point is that you will need to follow the markets closely and the health of the economy, which is easy to do with all the unique financial technical graphs, tools and live news feeds that Plus500 provide.
If you are quoted 1146.25 for your trade and you think the market will fall, you decide to sell 100 contracts (go short) which will leave you with $114,625 in value.
Overnight it dropped 10 points (in your favour) and the broker is quoting 1136.25, you decide to buy back at the higher price so that you can close your trade. Leaves you with a profit of around $950 with interest.
But there’s a catch……………
You can also lose if you had decided that the S&P500 would increase and placed a long position. You would have lost $1050 plus interest of around $15 making a total of $1065.
Ahead of the closed markets Walt Disney gained 0.53 percent.
Broadridge Financial gained 11.16 percent, and after reporting quarterly results Mosaic rose 5 percent.
At the end of trading the Dow Jones Industrial Average advanced 0.5 percent at 25,628.91 points.
The Nasdaq Composite rose 0.31 percent to 7,883.66.
The S&P500 index was at 2,858.45, short of the 2,872.87 January record.
Wall Street’s fear gauge CBOE Volatility Index fell to 10.93 points.
On the NYSE advancing issues outnumbered declining ones by a 1.20 to 1 ratio. While on the Nasdaq advancing issues were at 1.29 to 1 ratio.
The total volume of shares traded on U.S. Exchanges was 6.2 billion.