On Monday, a slew of US stock indices had rallied with trade-sensitive Dow and benchmark S&P 500 closing out at record levels, as a flurry of upbeat economic data kept investors Panglossian about a blockbuster re-opening of the US economy, while a relatively muted movement in US Treasury bonds Yields kept a lid on inflation frets.
In point of fact, in the day’s Newtonian upsurge in a swathe of US stocks ranging from travel to cyclicals to technology, was mostly boosted up by an ISM (Institute of Supply Management) survey report which unfurled earlier in US trading hours that the Tempe-based business group’s index for US Services Sectors activity, accountable for roughly 67 per cent of entire US economy, had spiked to an all-time high of 63.7 last month, while an upbeat US non-farm payroll report released late on Friday showing that the US economy had added 916,000 jobs in March, a level never seen since late-August 2020, whipped up the latest leg of bullish wing further.
Strong economic data lift S&P 500, Dow to record closing
Citing statistics, in the day’s Wall St. closing bell, trade-sensitive Dow spiked 1.13 per cent to a record closing high of 33,527.19 and benchmark S&P 500 surged 1.44 per cent to 4,077.91, marking up the index’s highest closing level, while tech-heavy Nasdaq soared 1.67 per cent to round off the day at 13,705.59.
Meanwhile, referring to an increase in investors’ bet on so-called tech-related growth-stocks following the US President Joe Biden’s proposal of a $2 trillion-plus investment with muted movements in US Treasury bond Yields, a Chief Investment strategist at Inverness Counsel in New York, Tim Ghriskey said, “Part of today is yields aren’t moving and that is helping tech, there is at least some rotation going back into tech by somebody that is helping the sector.
At some point the cyclical move is discounted, these stocks, a lot of them had big moves and are valued above where they were in early February of 2020”.