US stocks close higher as banks, technology firms lead broad rally
A choppy day of trading on Wall Street ended Thursday with stocks broadly higher and another all-time high for the Dow Jones Industrial Average.
Banks and technology companies led a late-afternoon turnaround that pushed the S&P 500 to a 0.8% gain, reversing the benchmark index’s losses for the week. Gains in most Dow companies, including Goldman Sachs, IBM and Cisco Systems, nudged the blue chip index to a new high for the second straight day.
Apple, Microsoft and Intel were among the winners, contributing to the rally in tech stocks. That helped the S&P 500’s technology sector break a seven-day losing streak, which reversed an early slide in the Nasdaq.
The stock indexes wavered earlier in the day, weighed down by a selloff in health care stocks. Drugmakers Moderna and Pfizer closed lower following news late Wednesday that the White House supports waiving intellectual property rights for COVID-19 vaccines in order to speed up immunizations in poorer countries.
Investors continued to weigh the latest corporate earnings reports while looking ahead to a key jobs report due out Friday.
“We’re getting to the end of earnings season, and numbers are coming in typically ahead of expectations,” said Tom Hainlin, national investment strategist at U.S. Bank Wealth Management. “The outlook for the year looks like it’s OK. That’s the basis for an upward-trending market.”
The S&P 500 bounced back from an early slide, adding 34.03 points to 4,201.62. The index is on track for its eighth weekly gain in the past 10 weeks. The Dow rose 318.19 points, or 0.9%, to 34,548.19. The Nasdaq Composite climbed 50.42 points, or 0.4%, to 13,632.84. The techheavy index had been down 1.1% in the early going.
The Russell 2000 index of smaller companies also recovered from a stumble to an essentially flat finish, adding 0.05 points, or less than 0.1%, to 2,241.42.
Bond yields were mixed, with the 10-year Treasury note trading at a yield of 1.57%, down from 1.58% late Wednesday.
Some health care stocks fell after news late Wednesday that the White House supports waiving intellectual property rights for coronavirus vaccines to help immunize poorer countries faster. That slide was countered by gains in household goods makers, banks and communication companies.
Moderna lost 1.4% after the company reported its first-ever quarterly profit, helped by the company’s coronavirus vaccine. The drop was largely tied to the news from the White House, as shares of other drug companies fell, including Pfizer, which dropped 1%. Shares of Johnson & Johnson were not hurt by the news, partly because J&J has other businesses like Band-Aids, the pain reliever Tylenol and its baby products franchise. The stock inched up 0.4%
Gold for June delivery rose $31.40 to $1,815.40 an ounce. Silver for July delivery rose 96 cents to $27.48 an ounce, and July copper rose 8 cents to $4.60 a pound. The dollar fell to 109.05 Japanese yen from 109.26 Japanese yen. The euro rose to $1.2055 from $1.1999.