On Thursday, all three key indices of Wall St. had closed out in the blacks after harbouring most of the session in red inks, as investors flocked on to less-favoured tech stocks in late-afternoon trading after US Labour Department data had unveiled that the US initial jobless claims had declined to their lowest levels since mid-March last year, spurring up hopes of an earlier-than-anticipated re-opening of US economy as inoculation drives gather steams.
If truth is to be told, Wall St. had opened up the day deep in the reds with tech-stocks leading the declines, nevertheless, followed by the reveal of Labour Department data, investors appeared to have betted on mega-cap tech stocks likes of Tesla Inc and Apple Inc, while a latest Wall St.
trend to purchase the stocks which would be benefitted by the most following a reopening of US economy, continued to fetch fresh impetus.
Wall St. ends higher in late-session rally
Since the day’s initial jobless claims data had prompted many investors to price in again on growth stocks with so-called ”meme stocks” such as GameStop rallying as much as 32 per cent, tech stocks offered a substantial scale of boost on S&P 500, while cyclicals and defensives propelled trade-sensitive Dow higher, though a stronger US Dollar had kept a lid on the gains.
Concomitantly, according to US Labour Department data, US initial jobless claims fell 97,000 to a seasonally adjusted 684,000, the lowest level since mid-March last year. Citing statistics, in the day’s Wall St. closing bell, trade-sensitive Dow gained 0.62 per cent to 32,619.48 and benchmark S&P 500 rose 0.52 per cent to 3,909.52, while tech-heavy Nasdaq added 0.12 per cent to wind down the session at 12,977.68.
Meanwhile, addressing to a growing cat-and-mouse between growth stocks and value stocks such as cyclicals and defensives, a chief investment strategist at Inverness Counsel in New York, Tim Ghriskey said, “It’s a very confused stock market, there isn’t real leadership.
One day cyclicals are in favour, the next day it’s tech-plus is in favour. But on the positive side, there isn’t what I call aggressive selling. ”