The US stock market S&P 500 index hit a record closing high on Saturday, boosted by Nike and several bank stocks. A weaker-than-expected inflation data eased people’s concerns about the Federal Reserve FED) abruptly curtailing its stimulus plan. Nike jumped 15.5% to a record high after the company’s fiscal year sales forecast was higher than Wall Street’s expectations, pushing the Dow to outperform the three major stock indexes.
Bank of America increased 1.9%, and Wells Fargo surged 2.7% after the Federal Reserve announced that large banks have passed the stress test and will no longer face pandemic-related repurchase and dividend restrictions. S&P 500 financial stocks rose by 1.3%, the best performance among 11 sectors. Dennis Dick, a trader at Bright Trading LLC, said that the ongoing trend is a result of the profitability of a small number of technology stocks and the relocation of funds to some banking stocks after the stress test results. He added that the bank is expected to announce an increase in dividends soon.
The US President Biden’s announcement on Thursday that he accepted a bipartisan infrastructure spending agreement reached by the Senate continued to boost the stock market. Materials stocks and industrial stocks rose, helping the S&P 500 index to outperform the Nasdaq.
Compared with Nasdaq, the positive news about the infrastructure package is more conducive to the S&P 500. Nasdaq constituent companies will not pour cement on roads and lay steel on bridges. That is what S&P 500 constituent companies do. Data show that the US core personal consumption expenditures (PCE) price index rose lower than expected in May. It was up 3.4% year-on-year, which was higher than the Fed’s flexible target of 2%.
The shares of billionaire Richard Branson’s spacecraft company Virgin Galaxy soared nearly 40%, becoming the second-largest stock by volume after the company was approved by the U.S. aviation safety regulator to provide space travel. After a frantic year of trading, including the epidemic and Internet celebrity stocks, the FTSE Russell Index will adjust its constituent stock composition. This has promoted the cumulative trading of approximately 15.1 billion shares on the US stock exchanges, with an average daily trading volume of 11.2 billion shares over the past 20 trading days.
The Dow Jones Industrial mean grew by 0.69% to close at 34,433.84 points; the S&P 500 index rose 0.33% to close at 4,280.69 points. The Nasdaq index fell 0.06% to close at 14,360.39 points. This week, the S&P 500 index rose 2.7%, the Dow rose 3.4%, and the Nasdaq rose 2.4%. The S&P 500 index set its best weekly performance since early February, and the Nasdaq recorded its best weekly performance since April. FedEx fell 3.6% after the company’s earnings forecast for 2022 was lower than expected and was affected by recruitment difficulties. CarMax, a used car retailer, rose 6.7%. The previously announced quarterly revenue exceeded Wall Street expectations. Thanks to strong demand, more and more people choose to travel by private car instead of public transportation due to the epidemic.The ratio of the number of stocks on the New York Stock Exchange was 1.29:1; on the Nasdaq market, it was 1.22:1. 32 S&P 500 index stocks hit a 52-week high; no constituent stocks hit a new low; 149 Nasdaq index stocks hit a new high, 14 hit a new low.