As Wall Street kicked off the second half of 2021 on a positive note, stocks gained on Thursday to reach new record levels. The S&P 500 closed at a record for the sixth-straight trading day, lifted by pretty much all sectors but especially energy.
The blue-chip index rose 0.5%, settling above 4,300 for the first time at 4,319.94.
The Dow Jones Industrial Average was higher by 131 points to close at 34,633.53, while the tech-heavy Nasdaq Composite ticked up about 0.1% to 14,522.38.
Gold rose on Thursday but June was its worst month in 4.5 years.
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What’s propelling the S&P 500?
The rise for stocks was widespread, with energy stocks leading the way as West Texas Intermediate crude rose above $75 per barrel. Shares of Chevron rose 1.4%, making the stock one of the best performers in the Dow.
A stretch of strong economic data also helped propel equities higher, as weekly initial jobless claims came in at 364,000, setting a pandemic-era low. What’s more, the Congressional Budget Office hiked its estimates for economic growth. The U.S. economy also recovered rapidly as COVID-19 vaccines became widespread and businesses reopened.
All these helped the S&P 500 to rise above 14% with the Dow and Nasdaq posting double-digit percentage gains.
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Smaller companies and value stocks, however, appeared to lose momentum in recent weeks while Big Tech stocks regained their footing.
Such economic momentum is poised to stay strong for the next year, meaning investors have to stake their money “in things where earnings growth is more cyclical in nature,” according to Brent Schutte, the chief investment strategist at Northwestern Mutual.
What’s more, if inflation fears subside, growth and technology stocks could continue leading the stock market.
