NEW YORK – The Dow and S&P 500 powered to fresh records yesterday amid rising optimism over an economic recovery as coronavirus vaccines become increasingly available.
Banking and petroleum-linked shares were among the leaders, as tepid consumer pricing data reassured investors that inflation remains limited even as the economy picks up momentum.
“This period of hesitation and rotation going on since mid-February is coming to an end,” said LBBW’s Karl Haeling, who expects a strong April for stocks.
The Dow Jones Industrial Average jumped 1.4% to 33,072.88, topping a record set earlier this month.
The S&P 500 gained 1.7% to 3,974.54, also a record, while the tech-rich Nasdaq Composite Index gained 1.2% to 13,138.73.
Commerce Department data showed that prices grew less than expected at 0.2% last month, which was 1.6% higher than the year-ago period, easing fears that government stimulus measures will cause inflation and force the Federal Reserve to raise interest rates sooner than expected.
JPMorgan Chase jumped 1.7%, while Bank of America advanced 2.7% following the Fed’s announcement that most financial institutions can resume share buybacks and dividend payouts after June 30.
Petroleum producers Apache, EOG and Marathon all won at least 2.0% behind rising confidence in an economic recovery that will boost oil demand. – AFP, March 27, 2021
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