S&P 500 closes wobbly week at new high
Technology companies led a late-afternoon rally Friday on Wall Street that capped a week of wobbly trading with the major stock indexes hitting all-time highs.
The S&P 500 rose 0.5 percent after spending most of the day wavering between small gains and losses. The gain nudged the benchmark index to a record high for the second day in a row. The Nasdaq composite and the Dow Jones Industrial Average also set new highs.
More companies reported solid earnings, including manufacturer Mohawk Industries and genetic testing company Illumina. Bond yields rose, giving banks a boost. Bumble shares continued to climb after the company made a big splash in its stock market debut the day before.
Optimism that Washington
will come through on trillions of more aid and encouraging company earnings reports have helped stocks grind higher this month, along with hopes that the coronavirus vaccine rollout will set the stage for stronger economic growth.
“The one thing that continues to be supportive for the market is just the fact that the risk-reward in the U.S. equity market still seems to be the best game in town,“said J.J. Kinahan, with TD Ameritrade.
The S&P 500 rose 18.45 points to 3,934.83, while the Dow gained 27.70 points, or 0.1 percent to 31,458.40. The Nasdaq added 69.70 points, or 0.5 percent, to 14,095.47.
Traders also bid up shares in smaller companies. The Russell 2000 index rose 4.04 points, or 0.2 percent, to 2,289.36.
Despite a week of mostly minor gains and losses for the broader market, the S&P 500 notched its second straight weekly gain.
The latest U.S. government report on jobless claims reaffirmed that employment remains a weak spot in the economy, even as vaccine distribution ramps up in the hopes of eventually ending the pandemic. The University of Michigan survey of consumer sentiment came in well below expectations as well.
Investors do not expect the market to move substantially higher in the near term until there’s more clarity on the future of government stimulus and the direction of the U.S. economy. Democrats have decided to use a legislative process that does not require Republican support to pass the $1.9 trillion package.
“We’re sort of awaiting catalysts,” said Jeffrey Kleintop, chief global investment strategist at Charles Schwab.
Most Asian markets were closed to mark the Lunar New Year and European markets closed higher. U.S. stock and bond markets are closed Monday for Washington’s Birthday.