NEW YORK – Wall Street saw no reason to stop rallying as the United States economy pulls out of its downturn, lifting the Dow and S&P 500 to their second consecutive records yesterday.
At the close of US trading, the benchmark Dow Jones Industrial Average gained 0.5% to end at 34,201.13. The broad-based S&P 500 rose 0.4% to hit 4,185.53.
The tech-rich Nasdaq Composite Index saw slightly less ebullient trading, gaining 0.1% to close at 14,052.34, about 125 points below its all-time high.
Both the S&P 500 and Dow also posted their fourth consecutive weekly gains, ending a week that saw the government release data indicating that weekly jobless claims hit their lowest point amid the Covid-19 pandemic, and retail sales boomed last month thanks in part to government stimulus.
Chris Low of FHN Financial said the data, combined with easy monetary policy from the Federal Reserve that its leadership indicated it is not looking to end, puts traders in an optimistic mood.
“We had tremendous data all week this week.
“In addition to strong data, we got reassurances from Fed officials all week, including the chair, that they’re very comfortable with the economic and inflation environment... so that’s good news for equities, as well.”
Adding to the upbeat sentiment is data released before markets opened showing homebuilding rebounded sharply last month after winter weather snarled construction in February.
The data offers hope that the inventory squeeze pushing home prices up could end this year.
Homebuilder Toll Brothers closed 2.9% higher, while KB Home gained 3.3%, both all-time highs.
Morgan Stanley fell 2.8% after disclosing a US$911 million (RM3.76 billion) loss from the meltdown of Archegos Capital Management despite reporting blockbuster first-quarter profits. – AFP, April 17, 2021
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