Wednesday's early trade: S&P tops 2,700 for first time on tech gains, strong data

The benchmark S&P 500 index surged past the 2,700-mark for the first time on Wednesday and other major indexes hit record intraday highs as technology stocks climbed amid indications of robust economic growth in the US and overseas. The technology sector was boosted by a rise in shares of Oracle, IBM and chipmakers. The index - the best-performing S&P 500 sector in 2017 with a 37-percent jump - was up 1.08 percent.
"Tech sector got beaten up right toward the end of the year and is seeing a rebound. It stands to benefit the least from the tax plan, but large caps that have the largest overseas holdings will benefit from ability to repatriate money," said Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas. A report showed US factory activity increased more than expected in December, in a further sign of strong economic momentum at the end of 2017. Meanwhile, manufacturing surveys pointed to a strong start for the European economy.
The manufacturing data came ahead of the scheduled release of the Federal Reserve's minutes of its December policy meeting. Investors are likely to scan the release for hints on rate tightening action in the coming months and the impact of the US tax overhaul on the economy and inflation.
The odds of an interest rate hike in March jumped to 61.9 percent from 56.3 percent after the data, according to CME Group's Fedwatch tool. At 12:40 am ET (1740 GMT), the Dow Jones Industrial Average was up 58.72 points, or 0.24 percent, at 24,882.73 and the S&P 500 was up 13.77 points, or 0.51 percent, at 2,709.58. The Nasdaq Composite was up 50.44 points, or 0.72 percent, at 7,057.33.