Dow Jones, S&P back on track with record highs

Dow Jones, S&P back on track with record highs

By Kevin Dugan July 13, 2016 | 2:34am

A board on the floor of the NYSE shows the Dow at a new all time high after the closing bell at the New York Stock Exchange on Wall Street in New York City on July 12, 2016. Photo: UPI

What Brexit?

Stock indexes hit their highest levels ever on Tuesday, just weeks after weathering one of the biggest one-day drops in its history, as central banks continued to prop up economies around the world.

The Dow Jones industrial average jumped 120.74 points, to 18,347.67, the highest level it’s reached since it started gauging US industrial companies’ values 120 years ago.

The S&P 500, a broader index of stocks, also hit an all-time high of 2,152.14 after rising 0.7 percent.

The Nasdaq, which has been hit harder than the other major marts because of its heavy reliance on the sagging technology sector, turned positive for the year at 5,022.82.

The surge in US stocks comes after the Dow had one of its worst days ever, dropping 610 points, to 17,400.75, on June 24, the day the UK voted to leave the European Union.

While the long-term effect of the “Brexit” is still unknown, James Bullard, president of the Federal Reserve Bank of St. Louis, said the UK’s decision to leave will have “close to zero” impact on the US markets.

Ironically, it was that very market panic that led central banks around the world to inject hundreds of billions of liquidity into the markets, Sahak Manuelian, managing director of equity trading at Wedbush Securities, told The Post.

“When the US government is injecting as much money as they have been, they prop up US equity prices. That’s what happens,” he said.

“People still feel like the US is the place to be,” he said.

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http://nypost.com/2016/07/13/dow-jones-sp-back-on-track-with-record-highs

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