S&P 500, Nasdaq spikes to record closing highs amid upbeat data, earnings

by   |  VIEW 656

S&P 500, Nasdaq spikes to record closing highs amid upbeat data, earnings

On Thursday, all three key stock indices in the Wall Street gained more than 1 per cent with S&P 500 alongside Nasdaq clocking record closing highs as a barrage of buoyant earnings’ reports alongside economic data suggesting a faster recovery in US labour market, had restored investors’ confidence.

In point of fact, trade-sensitive Dow alongside benchmark S&P 500 that accounted for roughly 45 per cent of entire trading activities in the Wall Street, stretched their recent streak of gain into a fourth straight session on Thursday as investors’ optimisms soared further following reveal of a media headline that the Democratic US Senators had taken their first steps towards passing another round of trillion-dollar stimulus package in a near-term outlook, while a decline in layoffs alongside job gains in December had prompted investors to price in on an earlier-than-anticipated economic recovery.

Apart from that, Commerce Department data released earlier in the day had revealed that new orders for US-borne core capital goods surged by 1.1 per cent in December following a gain of 1.3 per cent in November which in effect would highly likely to add a silver lining into an ailing US labour market, while Labour Department data released earlier in US trading hours had revealed that the layoffs had eased last week.

Wall Street ends sharply higher on upbeat economic data, stimulus hope

Citing statistics, in the day’s Wall Street round off, trade-sensitive Dow gained 1.08 per cent to 31,055.86 and benchmark S&P 500 rose 1.09 per cent to 3,871.74, while tech-heavy Nasdaq jumped 1.23 per cent to a new record closing trough of 13,777.74.

Meanwhile, addressing to investors’ optimism over a cascade of riant economic data released in the recent past alongside progresses over a $1.9 trillion worth of pandemic stimulus bill, a portfolio manager at Kingsview Investment Management in Chicago, Paul Nolte said, “Economic data, earnings news and $1.9 trillion stimulus package talks are all “good for Wall Street. That’s why we’re seeing the market continue to rally”.