S&P 500 hits record high but high tech valuations a concern

Markets rose on Monday.

In the US, the S&P 500 rose 0.8 percent to a record high as the Nasdaq Composite jumped 1.4 percent.

The STOXX Europe 600 rose 0.9 percent and the Nikkei 225 rose 0.6 percent.

Peter Lewis, a managing partner at Murphy Capital Management, said that tech valuations are probably near the high end of the band, “but if earnings and merger activity keep going, that could bode well for the sector”.

However, Phil Davis, chief executive officer at PSW Investments, said that 5,600 on the Nasdaq is a key level and warned: “If we fail to hold 5,600, then you will begin to see panic setting in as fund managers are forced to consider the reality of their overvalued holdings.”