US stocks rise again ahead of Trump address

The Dow Jones Industrial Average rose gained 0.7% to 25,411.52. (AFP pic)

NEW YORK: Wall Street stocks advanced again on Tuesday with technology shares outperforming ahead of President Donald Trump’s annual State of the Union address.

The Dow Jones Industrial Average rose gained 0.7% to 25,411.52.

The broad-based S&P 500 climbed 0.5% to 2,737.70, while the tech-rich Nasdaq Composite Index won 0.7% to 7,402.08.

US stocks continue to rally on optimism that Federal Reserve monetary policy will be benign, and the United States and China will reach a trade deal.

The S&P 500 has risen more than 16%  since Dec 24.

In his address on Tuesday night, Trump is expected to emphasize infrastructure spending and argue the need for a wall along the Mexican border after a dispute with congressional Democrats shut the government for more than a month.

US services sector growth slowed modestly in January due to some impact from the government shutdown, according to a report by the Institute for Supply Management

Large technology companies, including Apple, Amazon and Netflix, climbed more than 1%.

Boeing was another big winner, jumping 3.3% after confirming it would lift production of its wide-body 787 aircraft to 14 per month from 12.

Other big winners included Estee Lauder, which surged 11.6% and Ralph Lauren, which won 8.4%. Both companies reported better-than-expected quarterly earnings.

But Gilead Sciences dropped 3.4% after the drug company reported quarterly earnings of US$1.44 per share, below analyst expectations for US$1.71.