S&P, Nasdaq extend record-setting rally on optimism over Biden stimulus plan

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S&P, Nasdaq extend record-setting rally on optimism over Biden stimulus plan

On Thursday, a slew of US stocks had closed out the session in an affirmative territory with tech-stocks spanning their recent streak of blowout gains as benchmark S&P 500 alongside Nasdaq had extended their record-setting rallies and wrapped up the session at record closing highs on optimism over more pandemic stimulus as proposed by the US President Joe Biden earlier this month.

However, trade-sensitive Dow had also been en route to wind up the session in the black, but drooled into a negative territory at the final minutes of trading. In point of fact, the day’s gains in the Wall Street were almost entirely prodded by a growing optimism on Biden’s $1.9 trillion pandemic stimulus proposal, while a raft of upbeat data had also supported the key indices.

Besides, earlier in the day, the US Labour Department said in a statement that the number of Americans filing for state unemployment benefits for the first time in their lives fell modestly to a seasonally adjusted 900,000 during the week that ended on January 16, down from a reading of 965,000 registered a week earlier, however, the figure had still remained at a historically high which in turn had kept a lid on the gains, suggested analysts.

Nonetheless, other economic data released in the day had depicted a solid growth with factory activity ballooning in line with a maverick upsurge in orders for US-borne core capital goods, while applications for home building permits rose to a fourteen-year peak last month, adding to bullish wing to market participants’ optimism.

Apart from that, a blistering rally of tech stocks, in particular led by the much-adored FAANG stocks, had spurred up investors’ morale further.

Wall St. scores modest gains on trillion-dollar stimulus hope

Citing statistics, in the day’s Wall Street closing bell, the trade-sensitive Dow fell 0.04 per cent to 31,176.01 and benchmark S&P 500 added 0.03 per cent to 3,853.07, while tech-heavy Nasdaq gained 0.55 per cent to 13,530.92.

Meanwhile, addressing to investors’ optimism over a larger stimulus check, a managing director at Beam Capital Management LLC in New York, Mohammad Aama said, “We’ve had a very strong momentum going into this year and coming into the Biden administration... because of prospects of a bigger stimulus check and more spending in general”.