US stocks close at record highs on positive economic growth forecasts

4:05pm: US equities hit record highs

US stocks skyrocketed to close at record highs a day after equities took a major pounding over concerns of a slowdown in global economic growth.

On the day, the Dow rose 1.30% to 34,874. The S&P 500 climbed 1.13% to 4,369 and the tech-heavy Nasdaq increased by 0.98% to 14,701. 

12:20pm: S&P 500 headed toward record finish

The Dow surged 424 points, 1.2%, to 34,845 at midday. The Nasdaq gained 124 points, 0.9%, to 14,683, and the S&P 500 added 42 points, 1%, to 4,363, which would be a record close.

It seems incredible to report, but, for US indices at least, the latest ‘dip’ (that one from yesterday of about eight hours) has already been bought,” IG Chief Market Analyst Chris Beauchamp wrote. ”Yet again all the things that stock markets seemed to worry about yesterday don’t matter today – a hawkish Fed, rising Delta cases and the imminent arrival of US earnings season have all been brushed aside as Friday’s trading ends in Europe with markets in bullish form, while on Wall Street stocks have a definite spring in their step.”

9:39am: Wall Street opens in the green

Despite predictions of a mixed start, the main indices on Wall Street managed to start Friday’s session on the front foot as traders attempted a rebound from yesterday’s selloff.

Shortly after the opening bell, the Dow Jones Industrial Average was up 0.65% at 34,646 while the S&P 500 climbed 0.51% to 4,342 and the Nasdaq rose 0.13% to 14,578.

Investor sentiment seems to have been boosted by a stabilisation in bond yields, as well as hopes that Thursday’s declines may have been more of a technical correction rather than evidence of a wider negative trend.

One of the standout performers in early deals was Stamps.com Inc, which soared 61.9% to US$320 following a US$6.6bn takeover offer by private equity group Thoma Bravo.

7:45am: Wall Street heads for mixed open

The main indices on Wall Street are expected to make a mixed start on Friday as traders attempted a small recovery from Thursday’s broad selloff.

The Dow Jones Industrial Average and the S&P 500 are expected to add 200 points to 34,494 and 14 points to 4,327 respectively, while the Nasdaq has been called 18 points lower at 14,694.

Analysts at OANDA said that the mostly green futures suggest that yesterday’s sell-off could have been simply a healthy technical correction rather than anything more ominous.

“Big tech could be under the spotlight as finance ministers and central bankers from the 20 largest economies meet in Vienna. Corporate tax reform will be at the top of the agenda, as the group looks to build on the momentum created at the G7 meeting,” said analyst Sophie Griffiths.

Four things to watch for on Friday:

• Companies reporting earnings on Friday include railway car and barge maker Greenbrier Companies Inc (NYSE:GBX), metal coating specialist AZZ Inc (NYSE:AZZ) and banking firm Ames National Corp (NASDAQ:ATLO)
• Mailing and shipping firm Stamps.com Inc (NASDAQ:STMP) will be in focus after the company agreed to be acquired by a private equity group in a US$6.6bn deal
• Shares in Pfizer Inc (NYSE:PFS) could also draw attention after the firm said it plans to ask US regulators to authorise a booster dose of its COVID-19 vaccine within the next month
• On the macro front, there is little of interest in the diary, however US wholesale inventory data may draw some interest  

Story by ProactiveInvestors