Dow and S&P Hit Records Amid Wait on Alibaba

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Dow and S&P Hit Records amid Wait on Alibaba

US stocks were higher on Friday with the S&P and the Dow rising to record territory amid investors waiting for the first trade of Alibaba in what will be the biggest IPO ever in the US.

The debut of the stock market of the Chinese e-commerce company is highly anticipated and is set to trade under the symbol BABA as reported by USA Today.

Investors were encouraged by the rejection of the independence referendum by Scottish voters, adding to the upward momentum that the Federal Reserve created earlier in the week that it would only raise interest rates after a considerable time.

According to Market Watch, the main benchmarks are set to record solid gains weekly. The Dow Jones Industrial Average climbed 0.3% or 60 points to 17,325.06 while the S&P 500 gained 0.3% or 5 points to 2,016.76. The Nasdaq composite gained 0.3% or 12 points to 4,605.58.

The leading US economic index climbed in August, indicating moderate growth in the economy during the holiday season as reported on Friday by the Conference Board.

Richard Fisher, Dallas Fed President talked about his views on the Fed policy. Fisher has called for the Fed hike during spring and wanted the rise in rates to be slow and gradual.

Edward Jones investment strategist, Kate Warne said, in regard to the fundamentals, that regardless of the new highs, the stock market is not running ahead, warning that volatility could exist on options expirations days.

On Thursday, BTIG lifted its forecast for the S&P by raising the year-end price from 1,980 to 2,075-2,100, making it the latest brokerage firm to make the move.

The FTSE of Britain gained 0.5% on news that Scotland would remain a part of the UK and the pound rose to a 2-year high against the euro.

DAX of Germany gained 0.3% while CAC-40 of France climbed 0.1%.

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To contact the reporter of the story: Jonathan Millet at john@forexminute.com