Categories: Stocks & Shares

Stocks broadly higher on Wall Street

The rollout of coronavirus vaccines has Wall Street anticipating a big rebound for the economy and corporate profits

US stocks shook off a midday slide and ended broadly higher on Wall Street on Tuesday, while Treasury yields kept marching higher amid expectations that the world’s largest economy will pull out of its slump after a powerful recovery sweeps the globe later this year.

The S&P 500 edged up less than 0.1 per cent after flipping between small gains and losses for much of the session. The Dow Jones Industrial Average closed 0.2 per cent higher at 31,068.69 and the Nasdaq composite was up 0.3 per cent.

Markets have been charging higher recently amid a wave of optimism about the future. The rollout of coronavirus vaccines has Wall Street anticipating a big rebound for the economy and corporate profits as daily life starts to return toward normal later this year. Expectations are also rising for another round of stimulus coming for the economy because Democrats are set to soon have control of the White House, Senate and House.

But the gains have been so big that critics say stocks and other investments simply look too expensive. Some measures of value in the stock market are at their priciest levels since 2000, when the dot-com bubble was popping. That includes how much investors are paying for each dollar in profits that a company produces.

Low interest rates and almost nonexistent inflation have been encouraging investors to keep piling into stocks, even though their prices are rising faster than their profits. But longer-term interest rates have begun to pull higher with expectations for more borrowing by the US government, economic growth and possibly inflation in the future. The yield on the 10-year Treasury has climbed to 1.14 per cent, for example. That’s up from 1.12 per cent late on Monday and from less than 0.90 per cent at the start of the year.




Important:

This article is for information purposes only.

Please remember that financial investments may rise or fall and past performance does not guarantee future performance in respect of income or capital growth; you may not get back the amount you invested.

There is no obligation to purchase anything but, if you decide to do so, you are strongly advised to consult a professional adviser before making any investment decisions.

Share
Richard Stanley

Recent Posts

World stock markets hit record highs

Asian stocks touched new peaks, Wall Street reached new highs, and MSCI’s global index added 0.28% World stock markets racked… Read More

3 hours ago

London stocks to open marginally lower

The FTSE 100 finished 0.4% lower at 6,715.42 on Thursday, down 0.3% since the week began Stocks in London are… Read More

3 hours ago

Indonesia stock market flat

The Jakarta Composite Index ended slightly lower, dropping 0.25 percent at 6,413.89 The Indonesia stock market has alternated between positive… Read More

4 hours ago

Netflix share price soars to double-digit gains on 200 million subscribers milestone is passed

The Netflix share price has soared by almost 13.5% in early trading on Wall Street this morning after the television… Read More

1 day ago

Stock market surges as Biden becomes president

The S&P 500 added 13 per cent on Wednesday, the best increase seen for any president since 1952 The stock… Read More

1 day ago

China stock market bounces higher again

The index added 0.47 percent to close at 3,583.09, while the Shenzhen Composite Index climbed 1.43 percent to finish at… Read More

1 day ago

This website uses cookies.

Read More