By Caroline Valetkevitch
NEW YORK (Reuters) – The three major US stock indices rebounded to record highs on Friday as financials and other economically focused sectors rebounded from a sell-off sparked by growth concerns earlier this week.
The rally allowed indices to make slight gains for the week, which also saw a strong rally in US Treasuries as investors feared the US economic recovery could lose steam as the delta variant of the coronavirus spread around the world.
10-year US Treasuries fell Friday, halting an eight-day rise while the S&P 500 financial sector rose 2.9%, the largest daily percentage increase in the sector since March 1.
Financials led the sector advance, followed by energy, materials and industrials. Major banks, including JPMorgan Chase & Co, will begin second quarter earnings season next week with the results release.
“What a turnaround after all of the gloom and doom of yesterday,” said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma.
“The US is in a bubble compared to the rest of the world, on a break from COVID. We don’t know how long that will take, “he said, but” until the narrative changes, this is a market with lots of free money and low interest rates. “
The Dow Jones Industrial Average rose 448.23 points, or 1.3%, to 34,870.16, the S&P 500 rose 48.73 points, or 1.13%, to 4,369.55, and the Nasdaq Composite rose 142.13 points or 0.98% to 14,701.92.
For the week, the Dow is up 0.2%, and the S&P 500 and Nasdaq are each up 0.4%.
A big jump in quarterly earnings is expected to mark a peak in US earnings growth as it recovers from last year’s pandemic-induced collapse. Investors look to US companies’ upcoming quarterly results and projections of recovery in the second half of 2021 as some fear the recent economic upturn is already fading.
Analysts expect earnings growth of 65.8% for companies in the S&P 500 index for the quarter, up from an earlier forecast of 54% earlier in the period, according to data from Refinitiv IBES.
(Graphic: Q2 expects top results for US companies, https://graphics.reuters.com/USA-STOCKS/EARNINGS/jbyprzbqype/chart.png)
On the individual stock market, Levi Strauss & Co was up 1.4% as it forecast strong full year earnings after beating quarterly earnings estimates to improve demand in its jeans, tops and jackets markets.
Chinese ridesharing company Didi Global Inc, listed in the US, rose 7.3% after four losing sessions as it was recently hit by an investigation by the Chinese internet watchdog.
The volume on the US exchanges was 8.51 billion shares, compared to the average of 10.5 billion for the entire session of the last 20 trading days.
Increasing issues outweighed declining issues on the NYSE by a ratio of 3.77 to 1; on the Nasdaq favored a ratio of 3.33 to 1 advanced.
The S&P 500 posted 44 new 52-week highs and no new lows; the Nasdaq Composite made 60 new highs and 32 new lows.
(Additional reporting by Devik Jain and Shreyashi Sanyal in Bengaluru; editing by Arun Koyyur, Aditya Soni, Maju Samuel and David Gregorio)
These items was originally published on FX Empire