Stock market: The S&P 500 recorded its best days in three weeks

Market review. The New York Stock Exchange rebounded on Friday, confidence in reopening the US economy was restored, and all three indexes ended sharply higher at the end of a choppy week.

The Toronto Stock Exchange closed higher on Friday, ending the week near where it began, as sectors more reliant on reopening the economy continued to offset losses in the technology sector.

Indications

In Toronto, the benchmark S & P / TSX The index rose 101 points, or 0.54%, to 18,752 points.

In New York, Prof. Standard & Poor’s 500 It rose 65 points, or 1.66%, to 3,974 points.

The Dow Jones It rose 453 points, or 1.39%, to 33,072 points.

The Nasdaq He earned 161 points, equivalent to 01.24% to 13138 points.

The Canadian dollar rose 0.27% to $ 0.7949.

Oil rose $ 2.27, or 3.88%, to $ 60.83.

Gold rose to $ 6.20, or 0.36%, to $ 1.731.30.

Context

LBBW’s Karl Hayling, who believes that after the end of the quarter and the Easter holidays, the period of indecision and rotation that has imposed itself since February will end. We stand on its own two feet. “

The New York Stock Exchange will be closed on April 2 for the Good Friday holiday, but the bond market will be open for a half-session.

During the week, the Dow Jones and S&P 500 indices finally ended up improving despite several sessions of losses, respectively 1.36% and 1.57%. The Nasdaq index regained some of its gains, dropping only 0.57%.

With the vaccination campaign that allowed 200 million injections in the United States during President Joe Biden’s first 100 days, “it means the economy is moving much faster toward reopening,” said Peter Cardello, of Spartan Capital Securities.

For Karl Helling, “This is the official excuse for this rally: vaccines and banking news,” meaning that the green light from the Central Bank (Fed) on Thursday re-authorizes the repurchase of stocks and dividends by the end of June.

But the analyst believes that the taste of risk illustrates the rebalancing of portfolios before the end of the quarter on Wednesday, as investors place themselves in an “illiquid” market next week.

April, a good month for the stock market

According to Haeling, “The combination of the downturn in the tech sector in recent weeks and the Dow Jones index this week has healthily cleansed the market,” and it is ready for a fresh start. He recalls that “April is a historic bullish month for stocks”.

Nearly all eleven sectors of the S&P 500 ended in green, starting with energy stocks (+ 2.62%) as crude oil prices rebounded sharply on Friday, due to the blockade of the Suez Canal by a giant container ship.

The IT sector also recovered well, The social networking site Facebook Earning 1.54% and Netflix + 1.03%.

Between banks, American Bank Profit of 2.71%, Citigroup 1.81%, C. B. Morgan Chase 1.67%.

The session also featured shared office group WeWork, which on Friday announced that it will likely launch an initial public offering (IPO) in the third quarter, through SPAC, these empty shells that facilitate raising money in the stock market.

The electric minivan fromArrival, A group created by a former Russian minister and first listed on the Nasdaq exchange Thursday through SPAC, and saw the stock drop 2.41% on Friday.

10-year Treasury yields were at 1.67% from 1.63% the day before, although the personal consumption expenditures inflation index, which the Fed watches, showed muted inflation in February at + 0.2%, lower than expected. Over the course of one year, it accelerated slightly to 1.6%, mainly due to higher energy prices.