At the close of trade, the Dow Jones Industrial Average index surged 305.10 points or 0.9% to 34,036. The S&P 500 spurted 45.76 points or 1.11% to 4,170. The tech-heavy Nasdaq Composite Index advanced 180.92 points or to 1.31% 14,039.
The rally on Wall Street came following the release of a batch of largely upbeat U.S. economic data, confidence in continued policy support from central banks and some upbeat corporate-earnings reports. Expectations of a strong economic recovery, combined with optimism over monetary and fiscal stimulus, have pushed equities to record levels as company reporting continues. Still, investors are closely monitoring developments on the vaccine rollout, while also keeping an eye on the threat from rising inflation.
Most of sectors advanced, led by the real estate, health care, information technology and communication services sectors. Financial shares declined with yields falling, even after Citigroup Inc. and Bank of America Corp. posted better-than-forecast trading revenue.
Bank of America and Citigroup also offered optimistic views on an economic recovery in their earnings reports on Thursday, but shares of the second-biggest U.S. lender fell 3% after it posted a profit that just about topped estimates. Citi's shares were 0.2% lower.
ECONOMIC NEWS: US Housing Market Index Reflects Strong Buying In April- US NAHB/Wells Fargo Housing Market Index inched up to 83 in April after dipping to 82 in March, the National Association of Home Builders reported on Thursday. The NAHB noted the uptick in homebuilder confidence came even as builders continued to grapple with rising lumber prices and supply chain issues and consumers faced higher home prices due to a lack inventory. The modest increase by the housing market index came as the gauge charting traffic of prospective buyers climbed to 75 in April from 72 in March. The index gauging current sales conditions also crept up to 88 in April from 87 in March, while the component measuring sales expectations in the next six months fell to 81 from 83.
US Industrial Production Rebounds 1.4% In March- US industrial production jumped by 1.4% in March after plunging by a downwardly revised 2.6% in February, the Federal Reserve reported on Thursday. The increase in industrial production came as manufacturing output surged up by 2.7% in March after tumbling by 3.7% in February, while mining output soared by 5.7% after plummeting by 5.6%. Meanwhile, the report showed an 11.4% nosedive in utilities output in March following a 9.2% spike in February, as the demand for heating fell because of a swing in temperatures. The Fed also said capacity utilization for the industrial sector rose to 74.4% in March from a downwardly revised 73.4 in February.
US Retail Sales Skyrocket 9.8% In March- US retail sales skyrocketed by 9.8% in March after tumbling by a revised 2.7% in February, according to a report released by the Commerce Department on Thursday. The stronger than expected retail sales growth was partly due to a jump in sales by motor vehicle and parts dealers, which soared by 15.1% in March after plunging by 3.5% in February. However, excluding the rebound in auto sales, retail sales still spiked by 8.4% in March after tumbling by a revised 2.5% in February. Ex-auto sales were expected to jump by 5%.
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