Dow, S&P 500 Reach Record Closing Highs As Tech Stocks Extend Rally

Stocks moved sharply higher over the course of the trading session on Friday, adding to the strong gains posted during Thursday’s session. With the continued upward move, the Dow and the S&P 500 set new record closing highs, while the tech-heavy Nasdaq reached its best closing level in two years.

The major averages all close firmly in positive territory, with the Nasdaq posting a standout gain. The Nasdaq spiked 255.32 points or 1.7 percent to 15,310.97, the S&P 500 surged 58.87 points or 1.2 percent to 4,839.81 and the Dow jumped 395.19 points or 1.1 percent to 37,863.80.

For the holiday-shortened week, the Nasdaq soared by 2.3 percent, the S&P 500 shot up by 1.2 percent and the Dow advanced by 0.7%

The run to record highs on Wall Street partly reflected continued strength among tech stocks, which helped lead the advance on Thursday.

Optimism about the outlook for earnings may have contributed to the continued strength in the tech sector ahead of next week’s release of quarterly results from companies like Intel (INTC), IBM Corp. (IBM) and Netflix (NFLX).

Computer hardware stocks saw substantial strength on the day, driving the NYSE Arca Computer Hardware Index up by 5.1percent to a record closing high.

Supermicro (SMCI) led the sector higher, skyrocketing by 35.9 percent after raising its fiscal second quarter guidance amid strong market and end customer demand for its rack-scale, AI and Total IT Solutions.

Semiconductor stocks also extended the rally seen on Thursday, with the Philadelphia Semiconductor Index surging by 4.0 percent. The index also reached a new record closing high.

Outside of the tech sector, substantial strength emerged among banking stocks, as reflected by the 2.5 percent jump by the KBW Bank Index.

Meanwhile, the Dow received a boost from a surge by shares of Travelers (TRV), with the insurance giant spiking by 6.7 percent. Travelers moved sharply higher after the company reported fourth quarter earnings that exceeded analyst estimates.

The rally…