American stocks went north on May 22 aided by strong showings of technology companies like chip manufacturers and software services. Defense contractors also helped the US stock markets to achieve steady gains as the market continued to move up after choppy trade during the third week of May. The list of prominent technology companies deserving special mention includes well-known multinationals like Qualcomm and Cisco Systems.
The S&P 500 index shot up 0.5 percent or 12.29 points to reach 2,394.02. The DJIA or Dow Jones Industrial Index went up by four percent or 89.99 points to touch 20,894.83. A gain of 0.8 percent or 49.91 points was achieved by NASDAQ Composite which touched 6,133.62. There was a pickup of 0.7 percent or 9.81 points by Russell 2000 Index to reach 1,377.14.
Sameer Samana of Wells Fargo Investment Institute said that people continue to buy personal electronics. The strategist pointed out that businesses tend to invest in software and also automation to boost productivity. He said that in an environment of low growth, every dollar counts and must be used to its maximum value. Samana also said that a few overseas markets have shown more strength than expected in 2017.
News of President Donald J. Trump's sale of military hardware to Saudi Arabia led to defense and aerospace companies' stocks to go up. Stocks of consumer companies also went up. Amazon rose most of all. Energy companies were tepid despite oil prices continuing their steady rise.
Technology leads pack
A spectacular 18 percent rise has been recorded by the Standard & Poor 500 technology component in 2017. This is three times the more diverse Standard & Poor 500. Qualcomm, the chip manufacturer, gained 2.8 percent or $1.61 to touch $59.28. Stocks of Cisco Systems, engaged in the business of software, routers, and switches, witnessed a rise of 1.2 percent or $2.42 to reach $138.85. Autodesk, the design software maker, saw its stocks rise by 3.1 percent or $3.45 to $113.36.
Both technology weighted NASDAQ composite and S&P 500 scored records during the third week of May before increasing worries concerning Washington's political uncertainties pushed the indexes to lower levels. The smaller companies' populated Russell 2000, set to benefit much more from Trump proposals, went down by three percent from its April peak record-setting highs. According to Samana, stocks will turn increasingly volatile in the immediate future due to the Federal Reserve and also European Central Bank (ECB) pulling back on stabilizing measures which were used from the time of worldwide financial crisis.