(Reuters) - The benchmark S&P 500 was within striking distance of a record high on Tuesday, powered by gains in technology stocks, and a strong second-quarter earnings season fueled optimism about the strength in the U.S. economy.
A trader works on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., July 31, 2018. REUTERS/Lucas Jackson
The index .SPX was up 0.37 percent at 2860.91, about half a percent away from the record it hit on Jan. 26. The Dow Jones Industrial Average .DJI added 161 points.
Shares of high-flying stocks, including those of Google’s parent Alphabet (GOOGL.O), Microsoft (MSFT.O) and Facebook (FB.O) were trading up between 0.3 percent to 0.7 percent. They helped drive a 0.51 percent gain in the S&P tech sector .SPLRCT.
Technology and energy stocks have been at the center of a sharp recovery in the S&P since a market rout in February.
The energy index .SPNY rose 0.94 percent, the most among the S&P sectors, as oil prices gained on expectations of tighter global supplies following United States sanctions on Iran. [O/R]
A strong earnings season has also helped U.S. stocks cushion some of the impact from the ongoing trade issues.
Of the 413 S&P 500 companies that have reported earnings so far, 79.2 percent have topped estimates. If the beat rate holds, it will be the highest on record, dating back to the first quarter of 1994, according to Thomson Reuters I/B/E/S.
“We have a good broad picture of what the earnings season looks like already, and for the most part it has been very positive,” said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin,
