S&P, Nasdaq hit record highs as risk appetite improves | Reuters

By Yashaswini Swamynathan

The S&P 500 and the Nasdaq touched record highs for the second straight day on Tuesday following a spate of upbeat corporate earnings, while Emmanuel Macron's victory in the French presidential election improved risk appetite. The VIX .VIX, Wall Street's "fear gauge", hit its lowest level in more than a decade earlier in the day. A lower VIX typically indicates a bullish outlook for stocks. The 10-year U.S. Treasury yield rose to its highest in a month, while gold prices fell, indicating a shift in investor preference for riskier assets. However, analysts cautioned against investor complacency, especially after the market's strong run since Donald Trump's elections as U.S. president. "In the short-term, investors can enjoy this run, but they should start to hedge their positions and look for safety," said Christian Magoon, chief executive at Amplify ETFs in Chicago, Illinois.

"Given world events, common sense would say there should be at least average volatility in daily price movement on the S&P 500. The index seems to be very lethargic."The index has not moved more than 0.4 percent in either direction in the past 11 trading days. At 11:03 a.m. ET the Dow Jones Industrial Average .DJI was up 8.97 points, or 0.04 percent, at 21,021.25, the S&P 500 .SPX was up 2.03 points, or 0.08 percent, at 2,401.41 and the Nasdaq Composite .IXIC was up 23.57 points, or 0.39 percent, at 6,126.23.

Five of the 11 major S&P sectors were higher, while the typically defensive plays such as utilities and telecom services fell. Shares of Valeant Pharmaceuticals (VRX.N) jumped more than 16 percent after the company posted its first profit in six quarters.

Endo International (ENDP.O), Office Depot (ODP.O) and Marriott (MAR.O) also rose after reporting better-than-expected quarterly earnings. Wayfair (W.N) surged to an all-time high of $62.65 after the online furniture retailer revenue beat analysts' expectations.Declining issues outnumbered advancers on the NYSE by 1,462 to 1,304. On the Nasdaq, 1,439 issues rose and 1,214 fell.The S&P 500 index showed 37 52-week highs and three lows, while the Nasdaq recorded 80 highs and 38 lows. (Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Anil D'Silva)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date: May 09, 2017 22:03 PM

Also Watch

Watch: The true stories from Dharavi that inspired Rajinikanth's Kaala
  • Thursday, March 8, 2018 Watch: Cyrus Khan talks about Parkour, jumping across walls and why he hates sitting
  • Thursday, May 31, 2018 Unwind: India's basketball sensation Amjyot Singh has his eyes set on becoming an NBA regular
  • Monday, May 28, 2018 First Day First Showsha — Review of Solo: A Star Wars Story in 10 questions
  • Saturday, May 19, 2018 Social Media Star: Rajkummar Rao and Bhuvan Bam open up about selfie culture, online trolls

Also See