New record close for S&P

<p>The S&P hit a new record close in trading yesterday.</p>

A strong period of growth for US stock markets continued yesterday (August 21st) as the S&P closed at a new record high.

The previous record high for the index had been set on July 24th, but the index finished the session above its record close of 1,987.98. During the session the S&P also hit a new intra-day high, breaking another record that had been set on July 24th, reports Reuters.

Investors are still positive that the market has further room to grow and some leading commentators have speculated that it will not be too long before the S&P breaks through the 2,000 barrier for the first time.

US markets are currently keeping an eye on a policymakers' meeting in Jackson Hole, Wyoming, with chair of the Federal Reserve Janet Yellen due to make a speech later today.

"The real question will be, with the bullish economic data, will Yellen's comment in Jackson Hole remain as dovish as the market hopes it will be?" said Lawrence Glazer, managing partner at Mayflower Advisors in Boston.

Ms Yellen was US president Barack Obama's first choice to take over the stewardship of the Fed, taking over from predecessor Ben Bernanke.

Jeff Duncan, president of Duncan Financial Management in Sunset Hills, Missouri, pointed out that trading volume has been light on the major US stock markets in the last few weeks, so it has not been taking a lot of positive activity to push indexes higher.

He said: "We're seeing a few people jump into the market right now because things look A-OK right now. But it's a slow period … before Labor Day, and so it isn't taking much to move the market up."

The S&P 500 only needed to add 5.86 points – or 0.29 per cent – in order to break its record high as the index ended the session at 1,992.37. There were also gains for the Dow Jones, which was up by 60.36 points to 17,039.49, a rise of 0.36 per cent, while the Nasdaq added 5.62 points – recording an increase of 0.12 per cent – to finish the session at 4,532.10.

Find up to date information on spread betting strategies at City Index

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.