The three major Wall Street indices ended higher for the day and week on Friday, with the S&P 500 (.SPX) and the Dow (.DJI) breaking recent records as investors strong economic data and bank earnings as signs of momentum in the US. recovery from pandemic.
Nine of the 11 S&P sub-sectors rose on Friday. The Energy (.SPNY) and Information Technology (.SPLRCT) indices were the exceptions. The former, which fell 0.9%, was weighed down by lower oil prices, while the latter was slightly lower, the day after the highest close ever.
The S&P 500 and Dow Industrials recorded their fourth direct profit. The S&P 500 achieved three discount points this week, while the Dow achieved its best finish two days in a row.
The tech-heavy Nasdaq (.IXIC) ended less than one percent below its own daily closing point reached on February 12th.
Investors’ confidence on the way forward appears to be steady, with the volatility index (.VIX), Wall Street’s fear meter, falling 1.9% to its lowest close in 14 months.
“Everyone is just looking at how far we can go before we start raising interest rates,” said George Catrambone, head of US trade at DWS Group.
“Until we see significant inflation growth and the Fed starts talking about raising interest rates, I think it’s going to be the conditions of the golden block.”
Morgan Stanley (MS.N) reported a 150% increase in quarterly profits on Friday, joining other major U.S. banks to post figures in the first quarter, boosting hopes of a quick economic recovery.
However, the investment bank’s shares fell by 2.8% as it also revealed a loss of almost $ 1 billion due to the collapse of the private fund Archegos. read more
Shares of JPMorgan Chase & Co (JPM.N), Goldman Sachs Group (GS.N), Bank of America Corp (BAC.N) and Wells Fargo & Co (WFC.N) rose between 0.7% and 3.8 % increased. The S&P Financial Index (.SPSY) climbed to a second consecutive record.
“If all this is put into context, and compared to other sectors, including technology, we will see that the financial results look very strong,” said Diane Jaffee, senior portfolio manager at TCW.
“Given what we know about the weakening of the Fed on dividend increases and buybacks after the next CCAR results in June, I think we will have a very strong half year – at least – for finance.”
The Dow Jones Industrial Average (.DJI) rose 164.68 points, or 0.48%, to 34,200.67; the S&P 500 (.SPX) scored 15.05 points, or 0.36%, at 4,185.47; and the Nasdaq Composite (.IXIC) added 13.58 points, or 0.1%, at 14,052.34.
For the week, the S&P rose 1.4%, the Dow 1.2% and the Nasdaq 1.1%.
The Federal Reserve’s promise to keep interest rates low despite higher inflation has also revived demand for wealthy technology stocks, although bond yields rose again on Friday after hitting lows by more than a week earlier. .
Of the technological link that led to the recovery of Wall Street last year due to the coronavirus-driven crash, Apple Inc (AAPL.O) slipped 0.3% on Friday, but Amazon.com Inc (AMZN.O) , Tesla Inc. (TSLA). O) and Microsoft Corp (MSFT.O) all achieved between 0.1% and 0.6%.
The US stock market was 9.99 billion shares compared to the average of 11.02 billion for the full session over the past 20 trading days.
Progressive issues were less than declining on the NYSE with a 1.36-to-1 ratio; on Nasdaq, a 1.20-to-1 ratio was the case of declines.
The S&P 500 reached 140 new 52-week highs and no new lows; the Nasdaq Composite recorded 154 new highs and 102 new lows.
Our standards: the principles of the Thomson Reuters Trust.