Technology, energy stocks drive S&P 500 to record high

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The S&P 500 hit a record high on Thursday, boosted by gains in heavyweight technology and energy companies, as well as on hopes that the Federal Reserve will maintain an accommodative policy amid signs that economic recovery was slowing.

On the data front, the number of Americans filing new claims for jobless benefits fell last week, although the focus will be on the Labor Department's monthly jobs report on Friday, which could set the stage for the Fed's policy meeting later this month.

"With jobless claims hitting a pandemic low, there's definitely some optimism as we look ahead to the full jobs picture tomorrow," said Mike Loewengart, managing director of investment strategy at E*TRADE Financial. "But keep in mind there's no shortage of headwinds when it comes to the labor market — with pockets of resurging COVID cases impacting reopenings and employees heading back to work. And with stimulus drying up, there's some reasoning behind the drop off in claims."

The S&P 500 and Nasdaq have consistently hit record highs over the past few weeks as a solid corporate earnings season and hopes of continued central bank support underpinned confidence as data showed the post-pandemic U.S. economic growth was beginning to slow. Still, strategists said those highs could be challenged as the rebound in corporate profits loses its edge and the pressure builds on the Fed to taper its massive stimulus.

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