Apple Powers S&P And Nasdaq To Record Highs

US business activity snapped back to the highest since early 2019 in August, according to IHS Markit surveys, as companies in both manufacturing and services sectors saw a resurgence in new orders.

Another report showed US home sales rose at a record pace for a second straight month in July and home prices hit all-time highs.

The unexpectedly sharp increases in Markit's indexes extend a pattern of choppy US economic data this week - including weekly jobless claims - that paint a picture of a fitful recovery from the Covid-19 recession.

"It's not surprising to see a pickup in manufacturing as the economy has started to reopen, even though pockets of the country have pulled back on their reopenings," said Lindsey Bell, chief investment strategist at Ally Invest. "It’s an encouraging sign and it supports the upside we have seen in the markets."

Apple rallied over 5 percent as its market value continued to swell after the most valuable publicly listed company in the world crossed the US$2 trillion milestone this week. The iPhone maker boosted the S&P 500 and Nasdaq more than any other company on Friday.

Bets that technology-focused companies including Apple and Amazon.com will emerge stronger from the pandemic set the S&P 500 and the Nasdaq on track to close out the week higher.

On Tuesday, the S&P 500 recouped all its losses caused by the coronavirus-driven slump and joined the Nasdaq in scaling new peaks. The Dow is still 6 percent below its all-time high in February.

Investors also worry about a stalemate in talks between House Democrats and the White House over the next coronavirus aid bill as about 28 million Americans continued to collect unemployment checks.

The Dow Jones Industrial Average rose 0.69 percent to end at 27,930, while the S&P 500 gained 0.34 percent to 3,397.

The Nasdaq Composite climbed 0.42 percent to 11,311. (Reuters)