Russell 2000, Dow transports hit all-time highs
U.S. stocks wrapped up the week, the month and the quarter on a high note, with the S&P 500, Nasdaq Composite and Russell 2000 hitting all-time highs on Friday. All the main indexes posted weekly, monthly and quarterly gains.
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How did stock indexes perform?
The S&P 500 index gained 9.30 points, or 0.4%, to 2,519.36, closing at a record for the 39th time this year. The benchmark index gained 0.7% over the week and 1.9% over the month. The S&P has risen for eight consecutive quarters, gaining 3.9% since July.
The Nasdaq Composite Index closed at a record for a 50th time this year, adding 42.51 points, or 0.7%, to 6,495.96. The tech-heavy index rose 1.1% over the week and is up 1% over the month, while its quarterly gain is 5.8%.
The Dow Jones Industrial Average rose 23.89 points, or 0.1%, to 22,405.09, missing its own record by about 7 points. The blue-chip index barely rose over the week--up 0.3%, but posted solid monthly and quarterly gains. Over the past month, the Dow is up 2.1% while over the quarter it rose 4.9%.
The Russell 2000 closed at a record for a 21st time in 2017, rising 2.08 points, or 0.1%, to 1,490.86. The small-cap index climbed by 2.8% over the week and 6.1% over the month. Over the quarter, it is up 5.4%.
What did market participants say?
"The fundamental headlines in terms of market weakness don't seem to be there right now, but valuations look a little stretched and investors may take a pause from the momentum we've been seeing," said Sean Lynch, co-head, global equity strategy at Wells Fargo Investment Institute. He said the S&P 500 could retreat 5% or 6% through the rest of the year before rebounding in 2018.
"The initial move so far this year has been on pretty good earnings and pretty good fundamentals. However, a lot of stocks have had great runs and look very expensive now." He singled out small-cap stocks as ones that "seem especially risky."
Don't miss:October could determine whether stocks have a great or middling move over the coming year (http://www.marketwatch.com/story/october-could-determine-whether-stocks-have-a-great-or-middling-move-over-the-coming-year-2017-09-29)
What drove the market?
Traders tried to find their footing after a week marked by hawkish comments from Federal Reserve Chairwoman Janet Yellen and the long-awaited announcement on tax reform from President Donald Trump's administration.
Read:Get set for a 'favorable' backdrop for stocks until at least 2019, says Blackstone's Wien (http://www.marketwatch.com/story/get-set-for-a-favorable-backdrop-for-stocks-until-at-least-2019-says-blackstones-wien-2017-09-29)
In the latest economic data, personal income rose 0.2% in August, while consumer spending was up 0.1%. Separately, the Chicago Purchasing Managers Index hit 65.2 in September, a jump from the August reading of 58.9.
Philadelphia Fed President Patrick Harker said Friday he still expects the central bank to raise interest rates in December. His comments come a few days after Federal Reserve Chairwoman Janet Yellen warned about being too slow in normalizing interest rates.
Meanwhile, the Trump administration has interviewed Federal Reserve Governor Jay Powell (http://www.marketwatch.com/story/trump-interviewed-fed-gov-powell-for-top-job-at-central-bank---wsj-2017-09-29)and former Fed governor Kevin Warsh for the Fed chairmanship. Chairwoman Janet Yellen's term ends in February and Trump has yet to announce a successor. Although, on Friday afternoon, Trump told reporters he interviewed four candidates for the Fed job and could make a decision in two or three weeks.
Which stocks was Wall Street following?
Zogenix Inc. (ZGNX) more than doubled on extremely heavy trading, as shares soared 172% on news of a positive trial (http://www.marketwatch.com/story/zogenix-says-late-stage-trial-of-treatment-for-rare-form-of-epilepsy-met-its-main-goal-2017-09-29) for its drug to treat a rare type of epilepsy.
Amazon.com Inc.-owned Whole Foods(AMZN) said late Thursday that hackers tried to steal data from its credit-card-swiping machines (http://www.marketwatch.com/story/whole-foods-says-hackers-tried-to-steal-data-from-credit-card-swiping-machines-2017-09-29). Amazon shares, however, closed up 0.5%.
Shares of Tyson Foods Inc. (TSN) jumped 7.6% a day after the food company raised its outlook (http://www.marketwatch.com/story/tyson-shares-jump-after-company-ups-outlook-announces-layoffs-2017-09-28)and announced a restructuring that includes layoffs.
Shares of Micron Technology Inc.(MU) jumped 3.6% after analyst at Nomura raised their price target to $45.
Read:Pier 1, Sherwin-Williams, Southwest issue profit and sales warnings on hurricanes, earthquakes (http://www.marketwatch.com/story/pier-1-sherwin-williams-southwest-issue-profit-and-sales-warnings-on-hurricanes-earthquakes-2017-09-28)
What did other assets do?
Asian stock markets (http://www.marketwatch.com/story/nikkei-on-pace-for-its-best-month-of-2017-2017-09-28) closed mostly higher, while European markets posted modest gains (http://www.marketwatch.com/story/european-stocks-set-for-best-month-of-2017-2017-09-29).
Oil prices (http://www.marketwatch.com/story/oil-prices-slip-amid-concerns-over-kurdish-independence-referendum-2017-09-29) settled slightly higher, marking their first quarterly gain of 2017. Gold prices (http://www.marketwatch.com/story/gold-ticks-higher-as-traders-weigh-tax-cut-prospects-rate-hikes-2017-09-29) fell on Friday, posting losses for the week and month in reaction to a stronger dollar, but still notched a gain for the third quarter.
The ICE Dollar Index (http://www.marketwatch.com/story/dollar-index-on-track-to-break-six-week-losing-streak-2017-09-29) was flat on Friday, but broke a six-month losing streak, rising 0.9% for September.
--Sara Sjolin contributed to this article
(END) Dow Jones Newswires
September 29, 2017 16:34 ET (20:34 GMT)