Dow Touches New Record High, Markets Pooh-Pooh Italy Turmoil

(RTTNews) - US stocks closed higher Monday, with the Dow Jones Industrial Average touching a new record high despite concerns about political upheaval in Europe.

Financials were strong today, reflecting expectations that borrowing costs will rise along with Federal Reserve interest rates beginning next week. Tech stocks also rallied.

Markets shrugged off concerns about Italy's political future and increased downgrade risks from rating agencies following Prime Minister Matteo Renzi's defeat in a referendum.

The Dow Jones Industrial Average closed up 45.82 points, or 0.2%, at 19,216.24, a fresh record close.

The S&P 500 index advanced 12.76 points, or 0.6%, to finish up at 2,204.71. The Nasdaq Composite index rose 53.24 points, or 1%, to close at 5,308.89.

On the U.S. economic front, the Institute for Supply Management released a report showing a significant acceleration in the pace of growth in the service sector.

The ISM said its non-manufacturing index climbed to 57.2 in November from 54.8 in October, with a reading above 50 indicating growth in the service sector. Economists had expected the index to inch up to 55.5.