S&P 500, Nasdaq notch fresh record closing highs

Wall Street went out for the weekend Friday at fresh record closing highs as economic data gave investors hope in the recovery story even though unemployment is on the rise again.

A measure of business activity snapped back in August to the highest levels since early 2019. The private industry survey suggested demand is recovering in both the factory and services sectors.

The housing sector continued to flex its muscle. Sales of previously owned homes rose at a record pace for the second straight month and median home prices hit an all-time high. Record-low mortgage rates are helping to fuel the surge.

The Dow rose 190 points. The S&P 500 gained 11 points to its highest close ever. A 46-point rally for the Nasdaq sent it to a record close as well.

According to Ken Kamen of Mercadien Asset Management, it's time for investors to lighten up on the high-flying tech names that helped fuel the rebound from the shortest bear market ever.

"You want to be broadening out your portfolio and it's just classic diversification. If you get one sector going up a lot you need to pair that to make sure that your other sectors aren't lagging behind. So absolutely, I'll be looking at cyclicals, value plays, you know solid companies and I still wouldn't be overlooking the international markets. I think there is a lot going on in the globe."

Tesla was a stand-out stock. Shares of the electric car company soared about $2,000 a piece for the first time. Investors are gobbling up the stock ahead of an upcoming stock split. Tesla's market value is now close to $400 billion, that's nearly four times as much as the value of General Motors, Ford and Fiat Chrysler combined.

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