Tech stocks lift S&P 500, Nasdaq as indexes clock quarterly gains

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Tech stocks lift S&P 500, Nasdaq as indexes clock quarterly gains

On Wednesday, benchmark S&P 500 and tech-heavy Nasdaq had witnessed moderate gains with tech-associated growth stocks rising again alongside cyclicals, while all three key indices of Wall St. eked up lofty quarterly gains over the first quarter of fiscal 2021 as the US President Joe Biden had unwrapped an ‘once-in-a-generation’ $2 trillion-plus investment proposal late in the day.

Nevertheless, it remains to be seen whether a Biden Administration could secure supports in the US Congress for its utterly ambitious infrastructure investment proposal which has every potentiality to ramp up inflation while stemming an uncontrolled rise in national debts alongside an excruciating increase in taxations.

However, as all three key indices of Wall St. clocked robust quarterly gains, US money markets were mostly hinged on hopes of a solid economic recovery earlier this year despite a flurry of downside fundamentals such as a Reddit stock discussion group-led retail-frenzy that forced financial institutions to digest billions of dollars in losses, while a spike in US Treasury Yields that rose to a 14-month peak of 1.77 per cent yesterday, seemed to have muzzled appetite for riskier assets likes of tech-associated growth stocks.

Nonetheless, amid such slandering landscape for growth stocks which had pushed forth all three key indices of Wall St. to their all-time highs multiple times last year, a growing bet on undervalued cyclicals and defensives which are expected to be benefitted by the most following a solid re-opening of US economy, helped Wall St.

bulls propel forward over first quarter of 2021.

Wall St. ends higher as all three key indices secure quarterly gains

Citing statistics, in the day’s Wall St. closing bell, benchmark S&P 500 added 0.36 per cent to 3,972.89 after hitting a session high close to 4,000 earlier in the day and trade-sensitive Dow dwindled 0.26 per cent to 32,981.55, while tech-heavy Nasdaq had logged a torrential high-tide of 1.54 per cent to 13,246.87, leading the charges in the day’s Wall St.

On the quarter, Dow soared 7.8 per cent and S&P 500 gained 5.8 per cent, while Nasdaq rose 2.8 per cent, For the month, Dow climbed as much as 6.6 per cent and S&P 500 jumped 4.2 per cent, while Nasdaq added just 0.4 per cent.

Meanwhile, referring to investors’ shift towards growth stocks ahead of Biden’s $2 trillion-plus investment proposal, a Chief Investment Officer at RDM Financial Group at Hightower in Westport, Connecticut, Michael Sheldon said, “The trend we’re seeing today is investors rotating back into growth-oriented names that have gotten a little bit beaten up over the past few weeks or so due to underlying rotation toward the economic reopening stocks”.