On Thursday, all three key indices of Wall St. had rounded off the session in an upbeat tenure with S&P 500 storming past a 4,000-mark for first time in history, as mega-cap tech stocks such as Microsoft, Amazon and Google-parent Alphabet eked out robust gains alongside other growth stocks over optimisms of a solid economic recovery in a near term.
In point of fact, in the day’s robust rallies in the Wall St. were largely prodded by optimisms of a broad-based economic recovery as mega-cap tech stocks such as Microsoft, Nvidia, Amazon and Alphabet climbed more than 1 per cent, while the US President Joe Biden’s $2 trillion-plus investment proposal added to further bullish wing, prompting traders to open new “buying positions” for the so-called value stocks, which is expected to be benefitted by the most following a re-opening of US economy.
Amid such sanguine market landscape, Labour Department data released earlier in the day showing an unprecedented uptick in first-time claims for state unemployment benefits, had barely made an impact, while an ISM survey on US factory activity revealing its index for US manufacturing activities had skyrocketed to a 37-year high last month, muscled up market participants’ beliefs that a swiftly recovering US economy - mostly catapulted by a swathe of fiscal stimulus measures - would highly likely to accelerate by the fastest pace since 1984 this year.
Wall St. rallies on solid recovery bets
Citing statistics, in the day’s Wall St. closing bell, trade-sensitive Dow rose 0.52 per cent to 33,153.21 and tech-heavy Nasdaq jumped 1.48 per cent to 13,442.31 with the so-called growth stocks outperforming value stocks, while benchmark S&P 500 surged 1.18 per cent to 4,019.87, wrapping up a session above 4,000-mark for first time in history.
Meanwhile, citing prospects of further upward spirals in all three key indices of Wall St., a chief investment strategist at Baker Avenue Asset Management in San Francisco, King Lip said, “We’re still bullish for this year, and we think that with stimulus, with the Fed committed to being dovish, with the economy reopening due to more of the U.S. getting vaccinated, overall you’re going see corporate earnings do pretty well”.