S&P 500, NASDAQ CLOSE AT RECORD HIGHS
US equities gained on Friday (Saturday, August 29, 2020 in Manila) on better-than-expected economic data. Both the S&P 500 and Nasdaq composite notched record highs. Consumer spending in the US grew 1.9% in July, beating economists' 1.5% estimate and signalling a continued, albeit slowing, economic recovery, Ben Winck reported for Business Insider.
The Dow Jones industrial average erased its 2020 losses. The index briefly traded above its December 31, 2019 close in Thursday's session before paring gains.
Oil was little changed as Hurricane Laura weakened over the Gulf region. West Texas Intermediate crude climbed as much as 0.9%, to $43.42 per barrel, before paring gains.
Economists surveyed by Reuters anticipated growth of 1.5%. The gain follows a 6.2% jump in June and rebukes some fears that the nation's economic recovery stumbled last month. The department also said US personal income climbed by 0.4% in July. Economists expected a 0.2% drop.
The Dow erased its 2020 losses, becoming the last of the three major US indexes to turn positive year-to-date. The 30-stock index traded above its December 31, 2019 close on Thursday but ended the session below the threshold. The S&P 500 and Nasdaq composite erased their year-to-date losses months ago on surging tech stocks. The Dow's smaller exposure to the sector delayed its turning positive for the year.