U.S. stocks managed to close in positive territory Tuesday, with the Nasdaq Composite Index finishing above the psychologically important level of 4,000 points for the first time in over 13 years, as encouraging housing data trumped disappointing consumer sentiment.
Both the blue-chip Dow Jones Industrial Average and the broader S&P 500 set record intraday highs before sinking in the late trading session. But the Dow still logged an all-time closing high, rising 0.26 point, or less than 0.01 percent, to 16,072.80.
The S&P 500 gained 0.27 point, or 0.01 percent, to 1,802.75, roughly 2 points shy of its record closing high. In the meantime, the tech-heavy Nasdaq added 23.18 points, or 0.58 percent, to 4, 017.75.
Despite the continuing record run on Wall Street, the S&P 500 would grind higher than where it is right now, Joseph Greco, managing director for trading & sales at Meridian Equity Partners, told Xinhua Tuesday.
He also predicted that such a sharp correction would not be seen next year as a lot of people are hoping for, although there will be volatility.
A string of housing data came in positive Tuesday, providing a boost to the stock market.
U.S. privately-owned housing units authorized by building permits in October were at a seasonally adjusted annual rate of 1. 034 million, up 6.2 percent from the September rate of 974,000, the Commerce Department said. The latest building permits were the biggest since June 2008.
Meanwhile, the upward momentum in U.S. house prices remained strong in the third quarter, as prices rose 2 percent from the previous quarter, the ninth consecutive quarterly price increase, reported the Federal Housing Finance Agency (FHFA).
Separately, U.S. single-family home prices for September posted their strongest year-on-year gains since February 2006, according to data released by S&P Dow Jones Indices for its S&P/Case-Shiller Home Price Indices. Data showed the 10-City and 20-City Composites ' annual growth rates were both recorded at 13.3 percent in September.
However, U.S. consumer confidence came out below market consensus, but failed to push the major indices to negative territory. The index declined again in November after a sharp fall in October, as Americans worried about their future job and earning prospects, said the Conference Board, a New York-based business association, in a report released Tuesday.
