S&P 500 on Track for Another Record as Tech Stocks Rally – The Wall Street Journal
The S&P 500 was poised Thursday to set another record, propelled by a rally in big technology stocks.
Stocks have started the second quarter on strong footing, with the broad stock market index rising 2.7%. The largest tech companies have surged ahead as the bond market calmed, easing concerns about the high valuations of growth stocks.
“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,” said Ed Keon, chief investment officer at QMA. “Now rates have eased off their highs, you’re seeing those sectors underperform and technology come back into the lead.”
The S&P 500 climbed 0.4% after closing at its 18th record this year on Wednesday. The tech-laden Nasdaq Composite rose 0.9%. The Dow Jones Industrial Average added roughly 0.1%.
Federal Reserve Chairman Jerome Powell expressed concern Thursday over long-term “labor market scarring” and assured continued support for those out of work due to the pandemic and subsequent recession.