Fed, Wall Street, Recovery, Stock, S&P, Dow

Fed, Wall Street

Wall Street mostly rallies on strong recovery hopes

Wall Street mostly rallies on strong recovery hopes

26/3/2021 10:33:00 PM

Wall Street mostly rallies on strong recovery hopes

Wall Street 's main indexes broadly rose on Friday with technology, energy and financial stocks providing the biggest boost as investors bet on ...

BookmarkNEW YORK: The S&P 500 and Dow rose in a broad-based advance on Friday with technology, healthcare and financial stocks providing the biggest lift as investors bet on a recovery that is expected to deliver the fastest economic growth since 1984.

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The S&P 500 and the Dow were poised to end a seesaw week higher as investors rebalancing their portfolios at the end of the quarter continued to buy stocks that stand to benefit from a growing economy while they added some beaten-down technology shares.

AdvertisementAdvertisementThe Nasdaq fell, set for its second weekly decline in a row.The Russell 1000 value index, which includes energy, banks and industrial stocks, has gained more than 10per cent this year, easily outperforming its counterpart the Russell 1000 growth index, which is slightly down for the year. (Graphic: Value vs Growth, https://fingfx.thomsonreuters.com/gfx/mkt/oakpelrxmvr/Pastedper cent20imageper cent201616777421544.png) headtopics.com

While tech stocks slid, such as Tesla Inc, Amazon.com Inc and Google parent Alphabet Inc which all led the rally from last year's lows, Microsoft Corp and Facebook Inc bucked the trend, lifting the S&P 500 higher."It is less a move out of technology than a move that evidences a broader appetite for equities to include both growth and value," said John Stoltzfus, chief investment strategist at Oppenheimer Asset Management in New York. (Graphic: Fund flows into U.S. growth and value funds, https://fingfx.thomsonreuters.com/gfx/mkt/bdwvkmyomvm/Fundper cent20flowsper cent20intoper cent20U.S.per cent20per cent20growthper cent20andper cent20valueper cent20funds.jpg)

AdvertisementAdvertisementBy 2:33 p.m. EDT, the Dow Jones Industrial Average rose 166.03 points, or 0.51per cent, to 32,785.51. The S&P 500 gained 21.12 points, or 0.54per cent, to 3,930.64 and the Nasdaq Composite dropped 55.01 points, or 0.42per cent, to 12,922.67.

L Brands jumped about 2.2per cent after the Victoria's Secret owner raised its current-quarter profit forecast for the second time this month as it benefits from consumers spending their stimulus checks and relaxation of COVID-19 restrictions.The Federal Reserve last week raised its GDP estimate for 2021 to 6.5per cent from 4.2per cent and many economists expect still faster growth, which has spurred fears the economy could run too hot and force the Fed to raise interest rates.

"It has been hard to restrain our U.S. growth forecast in recent months. We've been upgrading our estimates almost as fast as we lowered them a year ago," Carl Tannenbaum, chief economist at Northern Trust, told the Reuters Global Markets Forum. headtopics.com

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AdvertisementBank stocks added 0.8per cent as the Fed said it would lift income-based restrictions on bank dividends and share buybacks for"most firms" in June after its next round of stress tests.The yield on benchmark 10-year U.S. Treasury notes rose to 1.66per cent, lower than a spike last week to 1.75per cent that sparked a selloff on inflation fears and a potential Fed rate hike - something the Fed has pledged not to do.

The market is concerned that all of a sudden the Fed is forced to tighten against its repeated mantra that it will not, said Marvin Loh, a senior global macro strategist at State Street Global Markets."The real concern is that things overheat and the Fed might be forced to change its mind," he said.

Energy stocks jumped 1.7per cent, tracking a boost in crude prices after a giant container ship blocking the Suez Canal spurred fears of a supply squeeze.Nine of the 11 major S&P sectors rose with only communication services and consumer discretionary indexes in the red.

Nio Inc slumped 9.9per cent as the Chinese electric vehicle maker said it would halt production for five working days at its Hefei plant due to a shortage in semiconductor chips.Latest data showed U.S. consumer spending fell by the most in 10 months in February as a cold snap gripped many parts of the country and the boost from a second round of stimulus checks faded, though the decline is likely temporary. headtopics.com

Advancing issues outnumbered declining ones on the NYSE by a 2.07-to-1 ratio; on Nasdaq, a 1.03-to-1 ratio favored advancers.The S&P 500 posted 53 new 52-week highs and no new lows; the Nasdaq Composite recorded 69 new highs and 49 new lows.(Reporting by Herbert Lash in New York; Additional reporting by Devik Jain and Medha Singh in Bengaluru; Editing by Maju Samuel and Matthew Lewis)

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