The S&P 500 and Nasdaq closed at record highs Tuesday, as strength in tech and signs the U.S. economic recovery remains on a solid footing prompted investors to up their bullish bets.
Technology stocks continued their rich vein of form, making a strong start to the month thanks to a 41% surge in Zoom Video Communications (NASDAQ:ZM) after the video conference software maker reported quarterly earnings that handily beat Wall Street estimates.
"With the company [Zoom Video Communications] firing on all cylinders, we're bullish on its video-centered value proposition and concede that we underestimated its near-term growth potential," Oppenheimer said.
Apple (NASDAQ:AAPL) jumped 4% to close at all-time highs and led the move higher in the Fab 5 stocks, with Microsoft (NASDAQ:MSFT), Amazon.com (NASDAQ:AMZN), Facebook (NASDAQ:FB) and Alphabet (NASDAQ:GOOGL) closing in the green.
Walmart (NYSE:WMT), meanwhile, rallied 6% after launching its expedited delivery service, Walmart+, a direct competitor to Amazon's Prime service.
Investor sentiment on stocks was also supported by signs the economic recovery remains on track as coronavirus infections across to the U.S. continued to slow.
The ISM Manufacturing Index improved to 56.0 from 54.2 in August, topping economists' forecasts for a reading of 54.5.
"We remain confident that manufacturing will be more resilient to COVID-related developments than the service side of the economy, and activity should continue to expand in coming quarters as the recovery takes hold," Jefferies (NYSE:JEF) said.