Dow sets new five-year high despite budget cuts
NEW YORK (AFP) - The Dow Jones Industrial Average defied the effects of new US spending cuts and pushed to a new five-year high on Monday.
At the closing bell, the Dow picked up 38.16 points (0.27 per cent) to 14,127.82, its second highest close ever and less than 40 points from the all-time record set on Oct 9, 2007.
The broad-based S&P 500 increased 7.00 (0.46 per cent) to 1,525.20, while the tech-heavy Nasdaq Composite Index gained 12.29 (0.39 per cent) to 3,182.03.
The gains came after US budget cuts took effect Friday following the failure of Washington policy makers to agree on a compromise package. "Yes the sequester has been activated, but it will take time to have effect on the economic data," said Peter Cardillo of Rockwell Global Capital. The markets continue to show much "resilience," he added.