New 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, Reuters reported.
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.
The 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 10% this year, easily outperforming its counterpart the Russell 1000 growth index, which is slightly down for the year.
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.
By 2:33 p.m. EDT, the Dow Jones Industrial Average rose 166.03 points, or 0.51%, to 32,785.51. The S&P 500 gained 21.12 points, or 0.54%, to 3,930.64 and the Nasdaq Composite dropped 55.01 points, or 0.42%, to 12,922.67.
L Brands jumped about 2.2% 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 6.5% from 4.2% 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.
Bank stocks added 0.8% 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 1.66%, lower than a spike last week to 1.75% 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.
Energy stocks jumped 1.7%, 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 9.9% 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.
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.
Source: Saudi Press Agency