Wall Street rose overnight, lifting the Standard & Poor's 500 Index to a record, as a flurry of economic data underpinned the view that growth in the world's largest economy is accelerating at a pace that allows the US Federal Reserve to remain accommodative.
In late afternoon trading in New York, the Dow Jones Industrial Average climbed 0.47 per cent, the Standard & Poor's 500 Index advanced 0.35 per cent, while the Nasdaq Composite Index gained 0.10 per cent. The S&P 500 last traded at a record high 1,993.42.
First there was good news on the jobs front. The Labor Department said initial claims for state unemployment benefits dropped 14,000 to a seasonally adjusted 298,000 for the week ended August 16.
Housing also offered another sign of hope for a sustained recovery. The National Association of Realtors said existing home sales rose 2.4 per cent to an annual rate of 5.15 million units.
Manufacturing also shone. Markit's preliminary US manufacturing purchasing managers' index rose to 58 in August, from 55.8 in July. It was the highest level in four years. Separately, the Philadelphia Fed's business activity index climbed to 28.0 this month, up from 23.9 in July, and is now at a three-year high.