Business

Dow, S&P and Nasdaq all hit new record highs

NYSE traders Image copyright Reuters

All three major US indexes hit record highs - the first time they have done so on the same day since 1999 - as oil and retail stocks rose.

The Dow Jones rose 117.8 points, or 0.6%, to 18,613.5.

The wider S&P 500 index climbed 10.3 points to 2,185.7, while the Nasdaq was 23.8 points higher at 2,185.7.

A stock market rally since late June has pushed the S&P up 7% in 2016, helped by better-than-expected quarterly results.

However, some investors are concerned about high valuations. The S&P 500 is now priced at about 17 times expected profits, compared with a 10-year average of 14 times, according to Thomson Reuters data.

"I'm a bit surprised to see us hitting record highs again," said Randy Frederick of Charles Schwab in Austin. "We are pretty topped out and we should move sideways for awhile."

Oil prices spiked 4%, with US crude reaching $43.37 a barrel and Brent crude rising to $45.89 a barrel.

Earlier Saudi Arabia's energy minister suggested that petroleum suppliers should cut production to help rebalance global oil prices.

Shares of Chevron climbed 1.3%, while Exxon Mobil was 0.4% higher.

Shares in Macy's jumped 17% after the department store chain said like-for-like sales fell by less than expected in the most recent quarter and announced plans to shut 100 stores.

Rival department stores also saw their share prices climb. Nordstrom's and Dillard's both rose more than 7.5%.

Retailer Kohl's jumped 16% after its profits came in above Wall Street's expectations.

Chinese e-commerce giant Alibaba rose 5% after reporting a 50% increase in quarterly revenues.