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Massive Tech Profits Lift S&P 500 to New High

Index rose despite falls in many sectors
By Newser Editors and Wire Services
Posted Aug 26, 2020 3:58 PM CDT

(Newser) – More blowout profit reports from big tech companies pushed the S&P 500 to another record high on Wednesday. The benchmark index rose 1%, even though most of the stocks within it fell. Tech stocks accounted for the lion’s share of the gains. The S&P 500 gained 35.11 points to 3,478.73. The Dow Jones Industrial Average rose 83.48 points, or 0.3%, to 28,331.92. The Nasdaq composite, which is heavily weighted with technology stocks, climbed 198.59 points, or 1.7%, to 11,665.06, its third-straight record high , the AP reports. Treasury yields rose ahead of a highly anticipated speech from the Federal Reserve’s chair, Jerome Powell, on Thursday. Powell will be speaking as part of the Fed’s annual economic symposium.

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Salesforce.com, which joins the Dow next week, surged 24.2%, making it the biggest gainer in the S&P 500, after giving a profit report for its latest quarter that Wall Street analysts called "stupendous." Other technology stocks were also strong, with Adobe up 7.7%. Hewlett Packard Enterprise gained 3.2% following its own better-than-expected profit report. Tech stocks accounted for more than 80% of the S&P 500's overall gain, outweighing losses in health care, utilities, energy, and other sectors. It continues a longstanding run on Wall Street, where investors continue to pile into companies that can deliver strong growth even if the economy is weak or quarantined.

(Read more stock market stories.)

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