Nasdaq and S&P 500 Close at Records as Tech Leads Wall Street

The Nasdaq and the S&P 500 close at records Tuesday as tech leads Wall Street higher.
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The S&P 500 and the Nasdaq kicked off September on a high note by closing at records as the tech sector continued its march into the green.

The S&P 500 finished up 0.75% to 3,526, while the Nasdaq ended up 1.39% to 11,939, while also hitting an intraday record high.

The Dow Jones Industrial Average closed up 215 points, or 0.76%, to 28,645.

Zoom Video Communications  (ZM) - Get Report rose nearly 41% in trading Tuesday to $457.69 after the videoconferencing app beat second-quarter estimates and raised its sales outlook.

Zoom to the Moon

Other work-from-home stocks, such as CrowdStrike  (CRWD) - Get Report and DocuSign  (DOCU) - Get Report , traded higher in Zoom Video's wake.

Apple  (AAPL) - Get Report rose 4% Tuesday to $134.18 following a report that said the tech giant was preparing suppliers to mass-produce more than 75 million of its new 5G-enabled iPhones ahead of the phone’s fall launch.

Stocks also were getting a lift from data that showed U.S. manufacturing in August expanded at the fastest pace since late 2018 and topped economists' estimates.

Stocks have staged a remarkable recovery since the coronavirus pandemic was declared in March, led largely by tech shares and optimism over a reopening of the U.S. economy. 

The Dow finished August with a gain of 7.6%, and the S&P 500 rose 7%, its best gain since 1986. The Nasdaq jumped 9.6% last month, the tech-heavy index's best monthly performance since 2000.

But with election season looming and coronavirus infections in the U.S. still ticking higher, the question is whether the stock market gains can be sustained as September begins.

“The reopening continues, but many investors have one foot in and one foot out because they dislike the uncertainty of the upcoming elections," said Gerald Sparrow, chief investment officer of Sparrow Growth Fund. 

"There will be some unnerving short-term volatility. However, no matter who gets elected, the economy and the market will do well. We always find a way.”

Walmart  (WMT) - Get Report shares rose 6.3% to $147.59 after the retail giant unveiled Walmart+, a rival to Amazon.com's  (AMZN) - Get Report Prime membership.