On Thursday, a slew of US stock indices had rounded off the day in an upbeat complexion with technology stocks leading the benchmark S&P 500 and trade-sensitive Dow to record closing highs, as an ease-off of inflation concerns had prompted market participants to jump on the bandwagon of a buying wave of so-called growth stocks, while a raft of upbeat earnings reports alongside a 10-month peak retail sales data in March had underscored the underlying strength in US economy, eventually spurring up investors’ morale.
In point of fact, a flurry of upbeat economic data released earlier in the day had been the major market movers in the day’s wall St. that spearheaded all three key indices, while a 10-month peak US retail sales data in March had underpinned the scalability the President Biden’s $1.9 trillion stimulus package has been housing.
Apart from that, US initial jobless claims fell 193,000 last week to a seasonally adjusted 576,000, a level never witnessed since the early days of pandemic outbreak, when mandatory lockdown measures had nearly stalled the economic activities in the United States, suggesting an abrupt flesh-up in the US labour market which bode well for both value stocks and growth stocks as investors had long been pricing in on underperforming cyclicals and defensives over optimism that they would bear fruit following a robust re-opening of US economy.
Tech stocks propel Dow, S&P 500 to record closing highs
In tandem, assurances from the US Federal Reserve that it would keep its benchmark borrowing cost unchanged for an unforeseeable future despite a leapfrog in inflation indicators, had helped tech-heavy Nasdaq to surge more than 1 per cent - hoisting the index up to just 1.2 per cent shy of an all-time closing high - with mega-cap tech stocks such as Apple Inc., Microsoft Corp.
alongside Facebook Inc. leading the day’s Wall St. after struggling on recent weeks. Citing statistics, in the day’s Wall St. closing bell, trade-sensitive Dow gained 0.90 per cent to an all-time closing high of 34,035.99 and benchmark S&P 500 climbed 1.11 per cent to hit another record of 4,170.42, while tech-heavy Nasdaq jumped 1.04 per cent to 14,002.09.
Meanwhile, addressing to a raft of upbeat economic data alongside a rapid hike in optimisms over the earnings season after blockbuster profits of financial stocks, a vice-president of trading and derivatives in Charles Schwab, Randy Frederick said, “Uncharacteristically, expectations for earnings have improved for the quarter and what tends to move markets is when the numbers are far better than expected. While individual names may sell off, the overall sector is fine. ”