Late Session Buying Spree Drives US Stock Indexes Higher Across the Board

The major U.S. stock indexes put in an impressive performance on Friday, led by a rise in the benchmark S&P 500 Index and the blue chip Dow Jones Industrial Average. The broad-based rally was fueled by strong performances in technology, healthcare and financial stocks. Helping to generate the upside momentum were increasing bets on a recovery that is expected to deliver the fastest economic growth since 1984.

Cash Market Performance

In the cash market on Friday, the benchmark S&P 500 Index settled at 3974.54, up 65.02 or +1.64%. The blue chip Dow Jones Industrial Average finished at 33072.88, up 453.40 or +1.37% and the technology-based NASDAQ Composite closed at 13138.73, up 161.05 or +1.23%.

Price Action Recap

Stocks seesawed most of the session on Friday as investors continued to rebalance their portfolios at the quarter’s end, buying stocks of companies that stand to benefit from an expanding economy while adding a few of the beaten-down technology shares to their mix. Late in the session, buyers came in with a vengeance and Wall Street surged the last half hour of trading, lifting all three major indexes more than 1% into the close.

More Emphasis on Sector Investing

Friday’s price action offered more evidence that investors have an increasing appetite for both growth and value equities and less of an interest in technology companies. Some of the tech heavyweights slid, such as Tesla Inc and Google-parent Alphabet Inc, but Microsoft Corp and Facebook Inc bucked the trend, helping lift the S&P 500 and NASDAQ higher.

Ten of the 11 major S&P sectors rose, with only the communication services index in the red, according to Reuters.

Energy Stocks Surge

Energy stocks jumped 2.6%, tracking a boost in crude prices after a giant container ship blocking the Suez Canal spurred fears of a supply squeeze.

Bank stocks gained 1.9% as the Fed said it would lift income-based restrictions on bank dividends and share buybacks for “most firms” in June after its next round of stress tests.

Nio Inc slumped 4.8% as the Chinese electric vehicle maker said it would halt production for five working days at its Hefei plant due to a shortage in semiconductor chips.

L Brands jumped 3.7% after the Victoria’s Secret owner raised its current-quarter profit forecast for the second time this month as it benefits from consumers spending their stimulus checks and relaxation of COVID-19 restrictions.

For a look at all of today’s economic events, check out our economic calendar.