NEW YORK: U.S. stocks struck a positive note for the start of March, with a rally on Monday lifting the Nasdaq Composite above 5,000 — a level not reached since 2000 for the tech-heavy index — while the S&P 500 and the Dow Jones Industrial Average scored records of their own.
The record-setting day for the major indexes came amid economic reports on Monday that pointed to a slowdown in manufacturing activity as well as consumer spending. However, investors brushed off slightly disappointing data, seemingly content with the fact the U.S. economy is still growing, albeit, at a more modest clip.
Consumer spending in January fell more than expected, while the saving rate rose as Americans chose to pocket their savings from cheaper gasoline. Meanwhile, the widely-watched Institute for Supply Management’s manufacturing gauge slowed in February, but was in line with expectations.
Construction spending, which fell unexpectedly in January, proved one big disappointment.
A survey of purchasing managers showed the final February reading on the index was raised from the flash reading.
Much of the buzz on Wall Street centered on the Nasdaq Composite COMP, +0.90% which added 44.57 points, or 0.9%, to 5,008.10 on Monday. The tech-heavy index has closed above 5,000 only twice before in 2000 and is only one percentage point away from its all-time record reached on March 10, 2000.
The index gained 5.7% since the start of the year, thanks to a 17% gain in its heaviest-weighted component Apple Inc. AAPL, -0.07%
“Nasdaq’s reaching a round number 5,000 and 5,050, which was a record, are serving like magnets to investors. Double all-time highs in large-caps and small-caps last week are also boosting confidence,” said Sam Stovall, U.S. equity strategist at S&P Capital IQ.
Meanwhile, the S&P 500 SPX, +0.61% scored its own record high, the fifth this year, adding 12.89 points, or 0.6%, to 2,117.39. The consumer discretionary sector led the gains, while energy stocks took a hit as oil prices swung wildly.
The Dow Jones Industrial Average DJIA, +0.86% jumped 155.93 points, or 0.9%, to 18,288.63, also scoring its fourth record-high close this year.
The Russell 2000 RUT, +0.75% gained 9.1 points, or 0.7% to 1,242.47, also hitting a record.