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S&P 500 on Track for Another Record as Tech Stocks Rally

s&p-500-on-track-for-another-record-as-tech-stocks-rally

The S&P 500 was poised Thursday to set another record, propelled by a rally in big technology stocks.

The broad market index climbed 0.3% after closing at its 18th record this year on Wednesday. The tech-laden Nasdaq Composite rose 0.8%. The Dow Jones Industrial Average added roughly 0.04%.

Stocks have started the second quarter on strong footing, with the S&P 500 rising 2.7% this month. The largest tech companies have surged ahead as the bond market calmed, easing concerns about the high valuations of growth stocks.

“Within the market, the big factor so far this year has been interest rates,” said Ed Keon, chief investment officer at QMA. “So rates going up was part of the reason why you had this broadening of the market and a bit of a rotation towards value stocks, especially financials and energy. And now rates have eased off their highs, you’re seeing those sectors underperform and technology come back into the lead.”

At the International Monetary Fund’s virtual spring meetings, Federal Reserve Chairman Jerome Powell expressed concern over long-term “labor market scarring” and assured continued support for those out of work due to the pandemic and subsequent recession.

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