U.S. Stocks Edge Higher – The Wall Street Journal

U.S. stocks traded in a narrow range Wednesday, the last day of a quarter that closed with a June rally powered by technology stocks.

The S&P 500 rose 0.1% as of the 4 p.m. close of trading in New York, setting a new record. The Dow Jones Industrial Average added 0.6%. The tech-heavy Nasdaq Composite edged back from Tuesday’s record close, losing 0.2%.

Recently, investors have been rotating back into the technology stocks that they favored during Covid-19 lockdowns after inflation fears eased and low bond yields spurred a hunt for better returns. Optimism about the economic recovery, the prospect of more fiscal stimulus and confidence that the Federal Reserve will continue to support credit markets have also boosted value over growth stocks in recent days. The last day of the month and quarter is also leading to portfolio reshuffling.

“This market is an environment that looks very attractive because we have all this pent-up demand,” said Kristina Hooper, chief global market strategist at Invesco. “This all suggests that the economic rebound will be powerful in the back half of this year.”

The S&P’s consumer discretionary and staples rose 0.3% and 0.6%, respectively, after Tuesday’s data from the Conference Board showed its index of consumer confidence rose in June, beating analysts’ expectations.