US stocks inch closer to record high
US stocks edged higher and tested their all-time high again on Monday, after Chinese equities rallied on fresh stimulus measures.
Wall Street’s S&P 500 rose 0.3 per cent at the opening bell. The benchmark has struggled to surpass its February record in recent sessions, closing on Friday at 3,372 points or 0.6 per cent off its intraday peak. The tech-heavy Nasdaq Composite added 0.5 per cent.
Goldman Sachs was confident that US shares would eclipse their record level and keep rising. It raised its end-of-year price target for the S&P 500 from 3,000 to 3,600.
“The S&P 500 level has returned to its pre-pandemic high, but the building blocks supporting the price have shifted dramatically,” said David Kostin, Goldman’s chief US equity strategist. “Share prices reflect not just the expected future stream of earnings but also the rate at which the profits are discounted to present value.”
In China, stocks rose after fresh stimulus measures helped investors put to one side the latest escalation in tensions between Washington and Beijing.
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