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Tech stocks lead the S&P 500 hit a record high on Thursday after Powell affirmed his dovish tone


The S&P 500 Index set an intraday record earlier on Thursday, with tech stocks leading the way, as investors looked at comments on the global economy from the chairman of the Federal Reserve. state of Jerome Powell.

A weekly report on people seeking unemployment benefits in the US shows a sudden rise, perhaps reinforcing Fed concerns about a labor market recovery from COVID.

How is the stock benchmark?
  • Dow Jones industrial average
    DJIA,
    -0.02%

    3 points increase, or 0.1% less, to about 33,450.

  • S&P 500
    SPX,
    + 0.31%

    has risen 14 points to reach around 4,094, up 0.3%, after setting the previous day’s record at 4,096.45.

  • Nasdaq Composite Index
    COMP,
    + 0.81%

    an increase of 124 points, or 0.9%, to 13,812.

On Wednesday, The S&P 500 added 6.01 points, or 0.2%, enough to end at a record 4,079.95, 18th day of the year. The Dow rose 16.02 points, or 0.1%, to close at 33,446.26, the second highest ever, the Nasdaq Composite fell 9.54 points, or 0.1%, ending. at 13,688.84, while recording losses for the second day in a row. The Russell 2000 Index is oriented towards small caps
RUT,
+ 0.43%

down 1.6% to 2,223.05.

What drives the market?

Fed Chairman Powell repeated His expectation that the rise in inflation this year will be temporary at a webinar on the global economic outlook hosted by the International Monetary Fund. His comments come a day after minutes from the release of the Fed’s March policy meeting showed concerns about a recovery in the job market.

Weak labor market data have not been able to weaken the market’s bullish trend though, the United States claim weekly unemployment benefits shows an increase of 16,000 to 744,000, higher than the 694,000 expectation from economists surveyed by the Dow Jones. Claims rose to 728,000 last week from a previous estimate of 719,000.

“So while states balance vaccine rollout with plans to stop and start reopening, the labor market continues to feel the heat. But the disappointing results really put some strength behind the Fed’s adaptive stance, ”wrote Mike Loewengart, executive director of investment strategy at E-Trade Financial.

Requests further dropped by 16,000 to 3.73 million, marking the lowest level for that employment measure since March 21, 2020.

“We expect the market to continue to rise slowly with good economic news, but since most of that news is already priced, a bigger move (or lower) will only happen. if there is a significant boost to the uptrend (or a sudden drop to a decrease) in an important economic news, such as the quarterly GDP figure to be released at the end of April, ”Chris Zaccarelli The Independent Adviser Coalition’s chief investment officer wrote in a post-unemployment note. the data.

The Fed in Wednesday’s minutes also announced that it would come “for a while” before any of the central bank’s monthly asset purchases gradually diminish or before the benchmark rate is raised from current levels. almost 0%. That mentality may be enough to keep the market light – at least for now.

Which companies to focus on?
  • Canopy Growth Corp.
    CGC,
    -4.59%

    said Thursday it will be achieved Based in Toronto Supreme Cannabis Company Limited.
    SPRWF,
    + 52.43%
    ,
    in an equity and cash agreement worth about $ 435 million Canadian dollars ($ 345.6 million). Canopy shares fell 4%.

  • Telsa Inc.
    TSLA,
    + 1.62%

    expressed disappointment with red tape saying it is hindering construction of a new power plant outside the German capital Berlin, and has now issued its own reform proposals to the German authorities, AFP reported.

  • Shares of Valero Energy Corp.
    FLEA,
    -1.72%

    1.1% off Thursday, after producers of transport fuels and petrochemical products offered positive first-quarter prospects, citing higher-than-expected costs due to the impact of winter storm Uri on operations. to operate their refining and ethanol business.

  • Constellation Brands Inc.
    STZ,
    -3.92%

    3.5% drop after the announcement of higher-than-expected earnings for the fiscal fourth quarter on Thursday although profits were down year-on-year.

  • Cloud company Box Inc.
    BOX,
    -10.22%

    said on Thursday they had reached an agreement with a private equity firm KKR
    KKR,
    + 0.72%

    of which the KKR fund will lead an investment of $ 500 million in the company in the form of convertible preference shares. Box stocks fell 9.3%.

  • Shares of GameStop Corp.
    GME,
    -2.11%

    drops Thursday after video games and the consumer electronics retailer said they plan to appoint Ryan Cohen as chairman of the board. Kathy Vrabeck is currently the chairman of the board of directors.

  • Shares of Conagra Brands Inc.
    CAG,
    -0.63%

    Plunged on Thursday, after food companies, which included Birds Eye, Healthy Choice, Slim Jim and Reddi-wip, reported third-quarter profits and financial sales rose above expectations.

How are other assets performing?
  • ICE US Dollar Index DXYA monetary measure against a basket of six major players, was down 0.5% at 92.02.

  • Oil futures fell after a report showed gasoline supplies had increased, with US benchmarks CL.1 down 0.8% to $ 59.43 / barrel on the New York Mercantile Exchange.

  • The yield on 10-year treasury bonds
    TMUBMUSD10Y,
    1,641%

    dropped to 1,641%. Bond prices move inversely with yields.

  • Gold futures contracts trade higher, with a June contract GCM21 up 0.9% at $ 1,757.40 / ounce on the Comex.

  • In Europe, the index Stoxx 600 SXXP increase 0.6% and FTSE 100 of London UKX 0.8% increase.

  • In Asia, the Shanghai Composite SHCOMP 0.1% higher, Hong Kong’s Hang Seng HSI to close up 1.2%, while Japan’s Nikkei 225 I a slight decrease of 0.1%.

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