Dow exceeds 34,000, S&P 500 hits second record of week | News from banks

It was the second time this week that the S&P 500 posted a new better close, and the Dow broke its previous closing high on April 9.

The Dow Jones Industrial Average closed above 34,000 for the first time on Thursday, as the blue chip benchmark and the S&P 500 set new records in a rally in tech stocks fueled by falling prices. bond yields and strong March US retail sales data.

The 30-stock index closed up 305.10 points or 0.9% at 34,035.99. The broader S&P 500 Index – a gauge of the health of U.S. retirement and college savings accounts – gained 1.11% to close at 4,170.45, while the Nasdaq Composite Index ended the trading day up 1.31%.

It was the second time this week that the S&P 500 posted a new better close, and the Dow broke its previous closing high on April 9.

S & P’s information technology sector joined at an all time high. The Communications Services Index and itself were backed by big names in tech including Apple Inc, Microsoft Corp and Facebook Inc.

“Even if the valuations are quite high, you have confidence that the big tech giants are going to continue to be able to provide enough cash flow to justify these valuations,” said Tim Murray, a capital markets at T. Rowe Price Associates. strategist.

The fact that Treasury yields, after climbing higher at the end of March, have retreated as investors increasingly accept assurances from the Federal Reserve that they will maintain an accommodative monetary policy despite higher inflation is helping to draw liquidity to the bank. such names.

The yield on benchmark 10-year Treasury bills fell below 1.6% for the first time since March 25.

Major U.S. banks kicked off the first quarter reporting season on Wednesday, with Goldman Sachs Group Inc, JPMorgan Chase & Co and Wells Fargo & Co posting outstanding results.

Bank of America and Citigroup Inc also offered bullish views on an economic recovery in their earnings reports on Thursday, but shares of both fell.

“Unusually, earnings expectations have improved for the quarter and what tends to move the markets is when the numbers are much better than expected,” said Randy Frederick, vice president of trading and products derived from Charles Schwab.

BlackRock Inc, the world’s largest asset manager, advanced after reporting a 16% increase in first quarter profit, while PepsiCo Inc edged up after forecasting increased organic revenue growth in the second quarter .

To further bolster sentiment, data showed retail sales rose sharply in March as Americans received additional pandemic relief checks from the government, while jobless claims fell by more than 576 000 last week to a one-year low.

“For US stocks, it’s the best of both worlds because we have a 10-year decline, but we have good economic data. This is exactly what you would like to see, ”said Murray of T Rowe.

The Coinbase Global Inc cryptocurrency exchange rebounded before closing lower, a day after its IPO in a high-profile Nasdaq launch that briefly valued it at over $ 100 billion.

AppLovin Corp collapsed on its first day of trading after its initial public offering valued the mobile app and the games company at $ 28.6 billion.

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