By Caroline Valetkevitch
NEW YORK (Reuters) – US stocks were higher N Monday afternoon trading, with and on the Nasdaq hit a record high, and consumer spending rose in March and benign inflation data underscored the Fed's accommodative stance on interest rates.
Hopes for resolution of trade, raised profits and dovish Fed was rallying power of the index test this year. The index crossed its record high of 2,940.91 hit on Sept. 21 for the first time this year, restoring investor confidence in the ten-year bull run.
"It does create pressure to bring more customers. Today headline reinforces the fear to miss. He's going to make the bears less bearish or more concerned about what they're going to get run over, "said Jim Paulsen, chief investment strategist at The Leuthold Group in Minneapolis.
Commerce Department report showed, U.S. consumer spending increased most in more than 9-1 / 2 years in March, but price pressures remained subdued, with a key indicator of inflation, placing the smallest annual increase in 14 months.
Tame inflation may lead the central bank cut interest rates, the White House economic adviser Larry Kudlow said in a television interview & # 39; nd Monday.
Rose 44.73 points, or 0.17% to 26,588.06, the S & P 500 increased by 7.69 points, or 0.26% to 2,947.57 and added 27.71 points, or 0.34% to 8,174.11.
Financial shares rose by 1.2%, resulting in major profits among 11 sectors S & P.
Fed begins a two-day meeting on Tuesday, at the end of which will be announced a decision on interest rates.
Another busy week of earnings, expected results because of the Google-parent alphabet (NASDAQ 🙂 Inc and Apple Inc (NASDAQ 🙂 among other leading names.
Analysts expected profit S & P 500 companies fell only 0.2% in the first quarter, a sharp improvement compared to 2% incidence is estimated at the beginning of the month on the data from IBES Refinitiv.
As the trade negotiations enter their final phase, US negotiators N to go to China on Tuesday to try to work out the details to put an end to the protracted tariff spat between the two countries.
"It's really about the administration continues to hint trade agreement closely," said Rick Meckler, partner Cherry Lane Investments, the investment office something & # 39; in New Vernon, New Jersey.
"People do not want to miss the expected rally on the news."
The defensive utilities and real estate indices led the declines among sectors.
Ingersoll-Rand jumped after the Wall Street Journal reported, Gardner Denver Holdings Inc is approaching the acquisition of the air conditioning unit manufacturer.
Advancing problems superior decreases of them NYSE ratio of 1.83-to-1; on the Nasdaq, the ratio of a 1.68-to-1 in favor of more expensive.
S & P 500 published 38 new 52-week highs and lows, no new; Nasdaq Composite Index records 74 new highs and new lows 21.