The broad-based Standard & Poor’s 500 Index and the blue-chip Dow Jones Industrial rose on Friday to close at record highs, posting a third consecutive weekly rise partly on a lift from growth stocks and rising reopening optimism.
At the finishing bell, on the New York Stock Exchange (NYSE), the blue-chip Dow Jones Industrial rose +57.31 points, or +0.17%, to 33,446.26, notching a record closing high.
The broad-based Standard & Poor’s 500 Index gained 31.63 points, or 0.77%, to 4,128.8, hitting its third straight record close.
Meanwhile, the rich-tech Nasdaq Composite added 70.88 points, or 0.51%, to 13,900.19.
Growth names have booked positive gains over the past two weeks after being outperformed by value stocks for most of the year.
A pullback in the 10-year U.S. Treasury yield from a 14-month high hit in late March inspired buying in growth.
The blue-chip Dow climbed +2% last week, while the S&P 500 gained about +2.7%, posting its best week since early February.
The Nasdaq rallied +3.1% over the same period as major technology names outperformed.
Apple jumped more than +8% this week, while Amazon and Alphabet both gained more than +6%, respectively.
Stocks linked to the recovering economy led the gains again amid the accelerating vaccine rollout.
Carnival Corp rose 2.6% after getting two upgrades on Wall street amid pent-up demand and potential summer restart. General Electric climbed more than +1%, and JPMorgan added +0.8%.
On the data front, the U.S. producer price index, which measures wholesale price inflation, jumped in March.
The March PPI data showed a rise of +1.0%, compared with the forecast of an increase of 0.4%.
The PPI surged +4.2% year over year, which marks the largest annual gain in 9-1/2 years.
The 10-year Treasury yield ticked slightly higher to 1.66% following the inflation data.
Treasury yields had retreated earlier this week from their recent highs.
U.S. first-quarter results start later this week.
Elsewhere, in a T.V. interview, U.S. Federal Reserve Chair Jerome Powell said the U.S. economy is at an “inflection point” and that growth and job creation is poised to accelerate.
“What we’re seeing now is really an economy that seems to be much at an inflection point,” adding, “and that’s because of widespread vaccination and strong fiscal support, strong monetary policy support. We feel like we’re at a place where the economy’s about to start growing much more quickly, and job creation coming in much more rapidly.”
“The outlook has brightened substantially, but that’s only if there isn’t another wave of Covid-19.”
“The principal risk to our economy right now really is that the disease would spread again. It’s going to be smart if people can continue to socially distance and wear masks,” Powell said.
More than 183 million vaccines have been administered in the United States, according to the Centre for the Disease and Control and Prevention (CDC) data.