On Friday, all three key indices of Wall St. closed out the session with blowout gains as benchmark S&P 500 and trade-sensitive Dow had stretched out their record-setting rallies, racking up a fourth straight weekly percentage gain on the back of a barrage of strong economic data alongside robust bank earnings.
In point of fact, in the day’s modest gains in the Wall St. were largely prompted by investors’ optimism of a solid economic recovery alongside a further weakening of US Treasury bond Yields which was jolted below 1.60 per cent to a one-month low on previous session, while a raft of large US lenders receiving an enthusiastic reception on the first week of earnings’ season, helped all three key indices of Wall St.
secure weekly percentage gains. Alongside this, upbeat US economic data released earlier in the session including a 15-year peak US housing starts alongside a decent uptick in US Consumer Confidence as reported by a survey reading from the University of Michigan, bolstered investors’ bet on a solid economic rebound from the pandemic’s fiscal fallouts.
US Federal Reserve’s pledge, in tandem, to remain accommodative and to cling on to a dovish monetary policy despite a sharp increase in underlying inflation, also bode well for the Wall St. Besides, all S&P sub-indices but information technology and energy led the tally of gains with the latter faltering as much as 0.9 per cent amid frets of a potential supply glut and Morgan Stanley fell 2.8 per cent despite a 150 per cent rise in first-quarter profits as it took a hefty header of $1 billion from the collapse of private fund Archegos, however, investors’ confidence scaled higher as Wall St.’s volatility index, often dubbed as a fear gauge, fell 1.9 per cent to a 14-month low.
Wall St. rallies as S&P 500, Dow score fourth straight weekly gains
Citing statistics, in the day’s Wall St. closing bell, trade-sensitive Dow added 0.48 per cent to hit another record closing high of 34,200.67 and benchmark S&P 500, which is expected to post a 24.2 per cent growth in the first quarter of 2021 compared to the same time a year earlier, wrapped up the day 0.36 per cent higher to a record 4,185.47, while tech-heavy Nasdaq edged 0.1 per cent higher to 14,052.34, rounding off the week less than 1 per cent below of its all-time closing high achieved on February 12.
On the week, S&P 500 and Dow added 1.4 per cent and 1.2 per cent respectively, while Nasdaq rose 1.1 per cent. Meanwhile, forecasting a continuation of recent rally in the Wall St. until a shift in US Fed’s stance on its conservative monetary policy, a head of Americas trading at DWS Group, George Catrambone said late in the day, “Everyone is looking at just how far we can run before we start raising interest rates.
Until we see that significant inflation growth and the Fed starts to talk about raising interest rates, I think it’s going to be goldilocks conditions. ”