Nasdaq hits 15-year high as data show economic pick-up

The Nasdaq hit a high of 5,000 before retreating, the first time above that level since March 27, 2000, at the height of the dot-com bubble

US stocks advanced on Monday to push the Nasdaq above the 5,000 mark for the first time in fifteen years, as a round of mixed data pointed to a slowly accelerating economy.

The Nasdaq hit a high of 5,000.33 before retreating, the first time above that level since March 27, 2000, at the height of the dot-com bubble.

"Five thousand on the Nasdaq, it's been a long time coming," said Peter Kenny, chief market strategist at Clearpool Group in New York.

"Now that data point, or psychological barrier, has been breached, investors are going to look at the likelihood we will continue to see the move higher in the Nasdaq and the degree to which the Nasdaq will outperform the broader market."

US consumer spending fell for a second month in January, with lower gasoline prices dampening inflation pressure while personal income fell just short of expectations, showing a rise of 0.3 per cent.

The Commerce Department said on Monday consumer spending slipped 0.2 per cent after falling 0.3 per cent in December.

Economists polled by Reuters had forecast consumer spending, which accounts for more than two-thirds of US economic activity, dipping 0.1 per cent in January.

When adjusted for inflation, consumer spending increased 0.3 per cent after December's 0.1 per cent dip.

Separate gauges of manufacturing were conflicting, as financial data firm Markit's final US Manufacturing Purchasing Managers' Index hit a four-month high while a reading from the Institute for Supply Management fell to its lowest in 13 months.

The Institute for Supply Management (ISM) said its index of national factory activity fell to 52.9 from 53.5 the month before. The reading was shy of expectations of 53.0, according to a Reuters poll of economists, and was the lowest reading since January 2014.

Construction spending also softened, falling at a 1.1 per cent annual rate, below expectations calling for a 0.3 per cent increase in January.

The Dow Jones industrial average rose 110.97 points, or 0.61 per cent, to 18,243.67, the S&P 500 gained 7.1 points, or 0.34 per cent, to 2,111.6 and the Nasdaq Composite added 29.90 points, or 0.6 per cent, to 4,993.43.

The S&P 500 posted 42 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 109 new highs and 18 new lows.