Additional Coverage:
Wall Street Reaches New Heights
In a remarkable turnaround, the US stock market soared to new all-time highs on Friday, the first since mid-February. This achievement marks a significant recovery from the near bear-market territory the S&P 500 faced in early April.
The S&P 500 climbed 0.5% to close at a record 6,173.07, surpassing its previous high from February 19. The Nasdaq Composite also celebrated a new record, rising 0.5% and reaching its highest point since December 16.
This tech-heavy index has benefited from the recent AI boom, which has propelled a broader tech rally. The Dow Jones Industrial Average wasn’t left out of the party, gaining 432 points, or 1%.
While still below its historical peak, the Dow’s performance reflects a renewed sense of optimism in the market.
The day’s gains weren’t without a touch of drama. Late afternoon jitters arose after President Trump announced the end of trade talks with Canada due to a new digital services tax. While the news briefly dampened market enthusiasm, stocks rebounded in the final hour of trading, securing the record-breaking close.
This week proved exceptionally positive for all three major indices, with each posting their largest weekly gains in six weeks. The S&P 500, in particular, has experienced a dramatic swing, recovering the $9.8 trillion in market value lost between its February 19 peak and its April 8 low.
The market’s rapid rebound follows a period of uncertainty fueled by trade tensions and other economic concerns. While challenges remain, including potential debt ceiling debates, ongoing trade negotiations, and geopolitical risks, the market’s current trajectory suggests a prevailing sense of optimism among investors. However, with valuations currently exceeding earnings expectations, the sustainability of this rally remains to be seen.