Dow sets new five-year high despite budget cuts

NEW YORK: The Dow Jones Industrial Average defied the effects of new US spending cuts and pushed to a new five-year high Monday.

At the closing bell, the Dow picked up 38.09 points (0.27 percent) to 14,127.75, its second highest close ever and less than 40 points from an all-time record.

The broad-based S&P 500 increased 7.05 (0.46 percent), while the tech-heavy Nasdaq Composite Index gained 12.29 (0.39 percent) 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.