Wall St. sharply claws back on strong economic data with focus on tech stocks

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Wall St. sharply claws back on strong economic data with focus on tech stocks

A slew of US stocks rallied across the board on Friday with S&P 500 closed out the session at a spitting distance from its record closing high, riding on the back of a swathe of strong economic data. Apart from a raft of riant economic data underscoring an underlying strength in a ballooning US economy, investors cashed in on mega-cap tech stocks over anticipation of better-than-expected quarterly earnings’ reports scheduled to be released next week.

Nevertheless, in the day’s gains in the Wall St. followed a broad-based weakness in previous session, when a media headline highlighting the US President Biden’s plan to almost double up capital gains taxation, had overwhelmed the investors.

Concomitantly, investors’ sentiment fuelled up earlier in the day after London-based British-American data firm IHS Markit had said in a statement that its index for US composite manufacturing PMI (Purchasing Managers’ Index) had spiked to a record high in early-April, while a 14-1/2 peak US new home sales in March had feathered up market participants’ optimism further.

Wall St. rises on the back of upbeat economic data

Citing statistics, in the day’s Wall St. closing bell, tech-sensitive Dow gained 0.67 per cent to 34,043.49 and benchmark S&P 500 jumped 1.09 per cent to 4,180.17, while tech-heavy Nasdaq climbed 1.44 per cent to 14,016.81, leading the tally of gains.

Meanwhile, addressing to a sheer optimism of an upswing in a near term ahead of a week full of quarterly earnings’ reports of mega-cap tech stocks, a chief investment strategist at Inverness Counsel in New York, Tim Ghriskey said, “There is a lot of anticipation of what's to come.

We've seen actual reports beating these very high expectations. Yields have come back down, which is very positive for tech”.