NEW YORK (Reuters) – The S&P 500 and Dow rose on Friday’s broad rally with technology, healthcare and financial stocks delivering the biggest boost as investors bet on an expected recovery which will provide the fastest economic growth since 1984.
The S&P 500 and the Downs ended a week of higher savings as investors rebalanced their packages at the end of the quarter continuing to buy stocks benefiting from a growing economy while putting down some tech divisions.
The Nasdaq also ended higher as less-than-popular tech shares advanced, but the composite index posted its second weekly decline in a row.
Wall Street rose in the last half hour of trading, raising all three indices more than 1%.
The Russell 1000 value index, which includes energy, banks and business stocks, has gained more than 10% this year, outperforming the Russell 1000 growth index, which is just above over the balance of the year. (Graphic: Value vs. Growth,)
Some heavy technologies, such as Tesla Inc and parent Google Alphabet Inc, slipped, but Microsoft Corp and Facebook Inc added to the trend, helping to lift the S&P 500 and Nasdaq higher.
“There is less of a shift away from technology than a shift that reflects a broader desire for equities to embrace both growth and value,” said John Stoltzfus, chief investment strategy at Oppenheimer Asset Management in New York. (Graphic: Assets flowing into US growth and value assets,)
The Dow Jones industrial average rose 453.4 points, or 1.39%, to 33,072.88. The S&P 500 gained 65.02 points, or 1.66%, to 3,974.54 and the Nasdaq Composite added 161.05 points, or 1.24%, to 13,138.73.
For the week, the S&P rose around 1.6% and the Dow 1.4%, while the Nasdaq slipped 0.6%.
U.S. exchanges totaled 12.23 billion shares, compared to an average of 13.67 billion for the full session over the last 20 trading days.
L Brands jumped 3.7% after Victoria’s Secret owner lifted their standard quarterly profit forecast for the second time this month as consumers benefit from spending their incentive and rest checks from COVID-19 restrictions.
The Federal Reserve last week raised its GDP estimate for 2021 to 6.5% from 4.2% and many economists expect even faster growth, which has feared the economy could run too hot and slow. the Fed has raised interest rates.
The dollar went down but remained near four-month highs on continued optimism about the U.S. economy.
“It has been difficult to stop the US growth forecast in recent months. We have been updating our estimates almost as quickly as we put them down a year ago, ”Carl Tannenbaum, chief economist at the Northern Trust, told the Reuters Global Markets Forum.
Bank stocks gained 1.9% as the Fed said it would lift income-based restrictions on bank shares and buying shares for “most companies” in June after the next round of pressure tests.
Yields on U.S. Treasury 10-year benchmark notes rose to 1.66%, down from a spike last week to 1.75% which prompted sales in the face of inflation and a possible Fed rate hike. to be there – something the Fed has promised not to do.
The market is suddenly concerned that the Fed is pushing for a reversal of its mantra that it will not, said Marvin Loh, a senior global macro strategist at State Street Global Markets.
“The real concern is that things are heating up too much and the Fed may have to change its mind,” he said.
Energy stocks jumped 2.6%, following a rise in crude prices after a large cargo ship blocking the Suez Canal fueled fears of a supply crisis. [O/R]
Ten of the 11 main S&P sectors rose, with only the communications services index in the red.
Nio Inc fell 4.8% as the Chinese electric vehicle maker said it would suspend production for five working days at its Hefei plant due to a shortage in semiconductor chips.
The latest data showed that U.S. consumer spending fell the most in 10 months in February when a cold snare seized many parts of the country and the rise escaped the second round of stimulus studies, although the decline appears to be temporary.
Forwarding issues higher than those of the NYSE with a 3.30-to-1 ratio; on Nasdaq, a 1.81-to-1 ratio of promoters was preferred.
The S&P 500 set up 65 new 52-week highs and no new levels; the Nasdaq Composite recorded 82 new highs and 51 new lows.
Reporting with Herbert Lash in New York; Additional statement by Devik Jain and Medha Singh in Bengaluru; Edited by Maju Samuel and Matthew Lewis