After the US stocks have topped record highs this year, the bar to exceed the record levels has been raised significantly.
After the gains recorded last week, the stock market has changed the direction of its movement.
Consumer spending soared last month on the backdrop of strong retail sales. On the other hand, stocks rallied as the 10-year Treasury dropped 8 basis points.
The general losses in the stock market were cushioned by bank shares after their better-than-expected earnings releases.
The Federal Reserve Chairman Jerome Powell noted on Thursday that the economy is yet to see a well-rounded recovery from the pandemic.
The 916,000 jobs added in March features about 280,000 new workers from the hospitality and leisure industry, while construction and manufacturing reported 110,000 and 53,000 added jobs respectively.
The record high attained by the S&P 500 as well as the other market indices rode on the back of strong gains in the tech sector as led by the FAANG stocks on Thursday.
The US stock market may buckle amidst all uncertainties but confidence in the drivers of the economy can restore hopes for better days ahead.
The banking sector came under severe pressure as US-based Archegos Capital had to liquidate $20 billion worth of stocks owing to some of the over-leveraged positions.
As tech shares decline due to higher interest rates, bank stocks are rather benefiting from the rise.
The weekly jobless claims as per the Labor Department report have dropped to a four-month low since November 2020. The tech and growth stocks continue to rally further with the stimulus boost.
The consumer price index data shows that the inflation surge is in control within expected limits. Also, the falling Treasury yield boosted investor confidence in the market. UBS stays bullish on stocks for the next year.
Nasdaq Composite rose by 3.69% to 13,073.82, which made Tuesday the best day for the index since November 2020. The S&P 500 climbed by 1.4% to 3,875.44. As for the Dow Jones, it rose by 30.30 points, or 0.1%, to 31,832.74.
The 306 points accrued by the Dow Jones were fueled by the approval of the Biden administration’s $1.9 trillion coronavirus stimulus bill by the US Senate.
The Federal Reserve chairman acknowledged the surge in the US Treasury bond yields but didn’t suggest any action to keep the long-term yields under check.