Wall St. rounds off higher as tech stocks weld late-afternoon rally

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Wall St. rounds off higher as tech stocks weld late-afternoon rally

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.