On Wednesday, all three key indices of Wall St. had reported solid gains, while S&P 500 and Nasdaq mushroomed more than 1 per cent with Dow paring yesterday’s losses, as market participants appeared to be heavily betting on large-cap stocks which had overshadowed the pandemic-led concerns successfully so far this year.
Notably, on the day’s Wall St. closing bell, the Nasdaq had set its 39th year-to-date all-time closing highs, up from a total of 31 record closing highs registered last year, while the trade-sensitive Dow stood just 4 per cent shy of its pre-pandemic level.
Aside from that, sailing over the bullish winds in the Wall St. the MSCI’s gauge of global equity indices that keeps track of 49 stock exchanges across the globe had stormed past its February peak to reach a new closing high on Wednesday.
Mega-cap tech- and tech-related stocks propel Wall St. higher
Citing statistics, on the day’s Wall St. wrap-up, the trade-sensitive Dow added 0.30 per cent to 28,332.53 and S&P 500 gained 1.02 per cent to 3,478.81, remarking a new record-setting high, while the Nasdaq skyrocketed 1.73 per cent to 11,665.06 to score a new record closing high.
Apart from the gains of deep-pocket tech stocks, a pledge to fulfil the commitments agreed under the Phase 1 Sino-US trade deal in a phone call between the trade negotiators of Washington and Beijing had boosted up the bullion-run further, while a latest remark from the White House Chief of Staff Mark Meadows that the US President Donald Trump had been weighing options to incline another executive order to avert a genocidal job losses in US aviation industry, had added to investors’ optimism.
Meanwhile, referring to the gains of large-cap stocks such as Netflix which had surged 67 per cent this year thus far and had experienced their best session in three years on Wednesday, a chief investment officer at NovaPoint in Atlanta, Joseph Sroka said, “Your three highest sectors are all the mega-cap tech and tech-related stocks.
So that notion of large-cap tech leading the market is in play today. There’s this confidence that regardless of what happens with COVID, these companies have proven that they’re open for business”.