U.S. stocks Hit a Record High Dow Jones Broke The 34,000 Point for the First Time
US stocks closed in red today. The Dow Jones Index rose by 305 points, breaking the 34,000-poin for the first time, reaching a record high with the S&P 500. The three major indexes opened higher. The Dow Jones Industrial Average rose 305.1 points, 0.9%, to close at 34035.99 points. The Standard & Poor’s 500 Index rose 45.76 points, 1.11%, to close at 4,170.42 points. The Nasdaq Composite Index, which is dominated by technology stocks, rose 180.92 points, 1.31%, to close at 14038.76 points, which was close to an all-time high.
The U.S. stocks earnings season started this week, and many important companies at the forefront have performed well. Asset management giant BlackRock’s profit surged nearly 50% last quarter, driving its stock price up 2.1%. UnitedHealth’s better-than-expected performance and revised full-year financial forecasts stimulated the stock price to rise 3.8%.
Bank of America (Bank of America) doubled its profit last quarter, but its stock price fell 2.9% due to a surge in spending. Citigroup (Citigroup) announced that its profit was far better than market expectations, and announced that it would withdraw from 13 consumer finance business markets including Taiwan. The final share price fell 0.5%.
U.S. Treasury bond prices have risen with demand, and 10-year bond yields have plummeted to 1.53% from 1.63% yesterday. Technology stocks that are comfortable in a low-profit environment have performed well.
Shares of Apple and Google’s parent company Alphabet both rose by about 1.9%, Microsoft and Facebook both rose by more than 1.5%, and Amazon rose by nearly 1.4%.
The latest data show that the US economy is gradually getting rid of the shadow of the COVID-19. The Department of Commerce announced today that retail sales in the United States surged by 9.8% in March, reflecting a new round of revitalization checks issued to the public by the additional fiscal stimulus of $1.9 trillion to play a role in revitalizing the economy.
According to data from the Department of Labor, 576,000 people in the United States applied for unemployment benefits for the first time last week, far lower than the 769,000 in the previous week, which is the lowest level since the nation fell into the epidemic crisis in March last year. More and more people in the labor market are being vaccinated. The recovery continued as the anti-epidemic restrictions were loosened.
With the support of loose monetary policy, US stocks launched a counterattack by technology stocks last spring, quickly getting rid of the trough that fell after the outbreak of the epidemic. This wave of gains this year was taken over by groups that are closely linked to the economy, such as energy and finance, laying the foundation for U.S. stocks to repeatedly hit record highs.
The Dow Jones and S&P 500 both closed more than 20 times this year and hit record highs, and both have risen more than 11% since the beginning of the year.
In the next few weeks, corporate earnings reports will continue to be the focus of the market. Investors will assess corporate profits and prospects for economic recovery when US stocks are at historical highs. According to FactSet, a financial data provider, Wall Street analysts expect S&P 500 companies’ profit in the first quarter of this year to surge 30% from the same period last year.
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