US stocks close at record high

<p>Both the Dow Jones and the S&P 500 hit record highs last night.</p>

The Dow Jones and the S&P 500 both reached fresh highs during yesterday's (June 2nd) trading session in the US.

Both markets have been growing very well in 2014 so far and have regularly been pushing to fresh highs since the turn of the year. This is in contrast to how the indexes performed over the course of 2013, when they were beaten comfortably by the expansion of the Nikkei in Japan.

The markets were up on the back of a new report from the Institute for Supply Management (ISM), which revealed manufacturing was expanding at a brisk pace last month, reports the Press Association. This was in contrast to the previous figures from the body, which suggested there was a contraction in activity in the sector in May.

"It's a debacle, as far as ISM is concerned," said Tom di Galoma, head of fixed income rates at ED&F Man Capital. It's hurt their credibility and it's going to take a while for that to recover."

Stocks up

The Dow responded to the new manufacturing data by rising 26.46 points, or an increase of 0.2 per cent, to close the first day of the new week at 16,743.63. There was a similar performance on the S&P 500, which rose by 1.40 points, or an increase of 0.1 per cent, to finish up at 1,924.97. But there was a clean sweep for the main indexes in the US, as the Nasdaq composite was down by just 5.42 points, a fall of 0.1 per cent, to finish the session at 4,237.20.

Stocks were also up in Japan as a result of the improvement in manufacturing in the US during May, with the Nikkei rising in value by 2.1 per cent on the back of the news.

Chinese manufacturing has also been revealed to be improving in the last few weeks, with a new report from the Asian nation showing the industry's activity expanded during the course of May.

Find up to date information on the FTSE 100 and spread betting strategies at City Index

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (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.