S&P 500 record
The S&P 500 climbed close to 0.6% to hit a new record closing high of 4266 reclaiming its previous record from 14th June and fully recovering the losses triggered by the Federal Reserve’s surprise policy pivot. Comments from Fed Chair Jerome Powell Tuesday reiterated that inflation pressures should be temporary, which appeared to soothe market jitters after being spooked.
Nasdaq sets new high
The Nasdaq Composite jumped 0.7% to reach another record at 14369.
Dow climbs
The Dow Jones Industrial Average added 322 points gaining about 1%, to close at: 34197 placing it at around 2.5% from its all-time high.
U.S. Market news
A broad range of U.S. stocks gained on Thursday to push the benchmarks to new highs. Financials, in particular energy and communication sectors did well. Tesla added 3.5% recovering since recent losses.
The Dow suffered its worst week since October 2020 with a 3.5% loss last week after the Fed heightened inflation expectations and forecast rate hikes as soon as 2023, some analysts suggest earlier.
Economic comeback plays led the market losses as investors bet on slower growth amid the central bank’s hawkish sentiment. The S&P 500 fell 1.9% last week. Are investors coming to terms with the idea of interest rate hikes?
U.S. economic news
Confirmation came that U.S. economy grew 6.4% in year’s first quarter.
Durable goods orders in U.S. climbed in May.
U.S. 30 years mortgage rate climbed above 3% for the first time since April.
Biden infrastructure bill was confirmed.
Microsoft valuation surpasses £2 trillion – joining Apple in the $2 trillion elite club.
U.S. jobs data
Data out Thursday showed U.S. jobless claims totalled 411,000 for the week to end of 19th June – this higher than the estimate of 380,000. Markets still gained.
Bank stress tests
Bank stress tests performed Thursday demonstrated that all U.S. banks were in excellent shape and able to withstand an economic hit or recessionary period – bank shares gained.
If it weren’t for the pandemic and massive debt I’d suggest the U.S. economy was in a good place.
Where next – more records?