Dow, S&P rise to record highs
Subsiding inflation worries sparked a robust rebound in mega-cap tech stocks Thursday that propelled the Nasdaq sharply higher and drove the Dow and S&P 500 to record highs.
Investors also got more encouraging signs about the U.S. economic recovery. Americans filed fewer weekly jobless claims than expected, and President Joe Biden signed his massive stimulus bill into law.
The Nasdaq was the outperformer, rising two-and-a-half percent. The S&P 500 added 1% and the Dow rose for the fourth straight session, adding more than a half percent.
While tech was in the vanguard, the rotation into value stocks continued led by gains in material and industrial stocks.
National Securities Chief Market Strategist Art Hogan:
“This rotation into cyclicals and into value has been happening for months. Today is a great example of, maybe it has gone a touch too far, so I think, Nasdaq and technology playing a little bit of catchup.”
Coupang debuted with a bang, jumping 41%. The South Korean e-commerce company backed by SoftBank raised around $4.6 billion in the year’s biggest U.S. IPO. SoftBank shares also rose.
Shares of two companies that foresee pent-up demand gained ground. Bumble rose 11% after the dating app’s quarterly revenue rose more than expected. It expects higher demand from people who had avoided dating in person due to the health crisis.
And AMC Entertainment shares rose 4%. It says the vaccine rollout and major movie releases will boost sales this year.
