The stock market finished higher on Friday following a quiet and choppy session, with the S&P 500 closing the session above the 3,500 level for the first time. The Dow was up 162, or 0.6%, to 28,654, the Nasdaq gained 70, or 0.6%, to 11,696, while the S&P 500 rose by 23, or 0.7%, to 3,508. Advancing issues outnumbered decliners by an almost 3-to-2 ratio on the NYSE, where volume was still light.
Traders said that Friday’s session cemented the bullish technical setup on Wall Street, as even small-caps showed signs of life toward the end of the session. As one trader explained, “The improving economic outlook was back in focus in the latter half of the day on Friday, as growth-sensitive issues pushed higher, and thanks to that, the Dow finally turned positive for the year while small-caps also joined the afternoon rally.”
Even though Fed Chair Jerome Powell announced the Central Bank’s most important policy shift in years, and the campaign entered its most active phase with the Republican convention, stocks remained remarkably stable this week. The Fed will likely keep interest rates lower for longer, even in the case of a quick job market recovery and an uptick in inflation, which could provide additional support for stocks in the coming years. The S&P 500 and the Nasdaq hit new all-time highs again, and even the relatively weak Dow is now within striking distance of its respective record high. The U.S.COVID numbers continued to improve slowly, and despite the raging outbreak in India, global risk assets ticked higher, with U.S. equities still being the clear leaders of the recovery.
“A journey of a thousand miles begins with a single step”
As always, have a great evening and stay tuned!!!