US STOCKS-Wall Street closes sharply higher, but posts weekly loss


Reuters | Washington DC | Updated: 15-05-2021 01:46 IST | Created: 15-05-2021 01:31 IST
US STOCKS-Wall Street closes sharply higher, but posts weekly loss
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Wall Street ended higher at the close of a broad rally, an upbeat conclusion to whipsaw week of buying and selling as signs of a rebounding economy did battle with mounting inflation jitters. All three major U.S. indexes built on Thursday's gains, which saw S&P 500 notch its biggest one-day percentage bump in over a month.

"Today 'everything is going up day' because everyone is buying," said Chuck Carlson, senior vice president at Wealthspire Advisors, in New York. "It's a 'buy everything' day." Still, the indexes suffered their biggest weekly declines since late February.

"This week, given the big swings, is more evident of a trader's environment than a long-term investor's environment," Carlson added. "It's a market looking for its next sustained impulse to the upside." Those big swings were stoked by economic data, which fanned concerns that near-term price spikes could translate into long-term inflation, despite assurances to the contrary from the U.S. Federal Reserve.

"Inflation continues to be the biggest concern," Carlson added. "And when interest rates didn't go to new highs the bulls take over and investors are willing to step in and buy some of the stocks that had been beaten up this week." Economic data showed retail sales growth stalling and consumer sentiment dipping as prices remain on an upward trajectory, suggesting that while the demand boom might be taking a breather, inflation has not.

But in an indication that economic activity could return to normal, revised guidance from the U.S. Centers for Disease Control and Prevention said fully vaccinated people no longer need to wear masks outdoors and can avoid wearing them indoors in most places. For an interactive graphic on worldwide vaccination progress, click here https://graphics.reuters.com/world-coronavirus-tracker-and-maps/vaccination-rollout-and-access.

Unofficially, the Dow Jones Industrial Average rose 359.3 points, or 1.06%, to 34,380.75, the S&P 500 gained 61.24 points, or 1.49%, to 4,173.74 and the Nasdaq Composite added 304.99 points, or 2.32%, to 13,429.98. All 11 major S&P sectors ended the session green, with energy, boosted by rebounding crudes prices, enjoying the largest percentage gain.

Chips gave a lift to the technology sector , extending gains in the wake of a Reuters report that lawmakers in Washington are close to unveiling a $52 billion dollar proposal to aid U.S. microchip production. First-quarter earnings season is nearing its final curtain, with 457 constituents of the S&P 500 having posted results. Of those, 87% have beaten consensus estimates, according to Refinitiv IBES.

Major retailers Walmart, Home Depot, Target , Lowe's and others are on the docket next week. Analysts now see annual S&P earnings growth of 50.6%, in aggregate, for the Jan-March period, more than triple the rate forecast at the beginning of the quarter, per Refinitiv.

Walt Disney Co shares dropped after the subscriber additions to its streaming service fell short of expectations. Airbnb Inc reported a 52% jump in bookings as vaccinations spark rising vacation rental demand, driving its stock higher.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)

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