The DJIA today surged another 155 points, hitting a new record. The S&P 500 also hit a new record, while the Nasdaq crossed the 5,000 level for the first time since March 2000.
What caused the surge? Tech stocks led the way, fueling increased optimism in the sector. China also made a surprise announcement with its monetary policy. The news offset concerns about domestic data.
Dow: 18,288.63, +155.93, +0.86%
S&P 500: 2,117.39, +12.89, +0.61%
Nasdaq: 5,008.10, +44.57, +0.90%
What Moved the DJIA Today: Poor economic data trickled in from U.S. sources, but it couldn't slow the DJIA today. Consumer spending levels among Americans slipped for the second straight month, as households pull back on purchases despite a large decline in gasoline prices. Construction spending also slipped in February, and factory figures slowed in January. The messy data signals that the U.S. economy may not be growing at a fast enough rate in the first quarter.
Markets also reacted this morning to China's surprise decision over the weekend to slash its benchmark one-year loan rate to 5.35% and one-year deposit rate to 2.5%. This was the second rate cut by the nation's central bank in three months as the nation attempts to stave off inflation.
Now, check out the other top market stories - plus get our new profit tip for investors:
Money Morning Tip of the Day: Healthcare M&A is soaring, and there's an ETF to buy that lets you collect the profits.
Today's tip comes from Money Morning Tech Expert Michael A. Robinson:
This year has been the best start for global healthcare mergers and acquisitions (M&A) since 2009. Total deal value has soared 124% so far this year, to $35.1 billion.
The Pfizer Inc. (NYES: PFE) deal to purchase Hospira Inc. (NYSE: HSP) for $17 billion, announced on Feb. 5, is the largest U.S. deal so far in 2015.
M&A deals will remain a big driver for the whole healthcare industry. The pickup in M&A will accelerate biotech and pharma stocks way past the overall market.
Since the start of 2014, the S&P 500 Health Care Index has soared 29.2%. The Nasdaq Biotech Index has advanced 48.4%. But the wider Standard & Poor's 500 Index has risen only 14.1%.
The best way to profit from healthcare M&A is by buying shares of the SPDR S&P Pharmaceuticals (NYSE Arca: XPH) exchange-traded fund (ETF).
XPH is composed of some of biopharma's leading firms and a smattering of aggressive small caps. Many companies in the fund's portfolio will likely end up growing through mergers. Or they could become targets themselves.
For instance, XPH holds both Pfizer and Hospira. So, XPH profits from the sale of Hospira stock and, over the long haul, from Pfizer's lower-cost, higher-growth business model.
XPH holds 36 stocks, with an average market cap of $36 billion. It's returned roughly 95% to investors over the last two years. That's more than double the S&P's return of 38% during the period.
Go here for more profit tips and stock picks from Michael Robinson...