By Devik Jain and Medha Singh
Jun 25 (.) – The S&P 500 Index hit an all-time high on Friday, driven by gains in Nike and bank stocks, as weaker-than-expected inflation data eased concerns about a sudden decline in prices. stimulus from the Federal Reserve.
* Nike Inc. was up 13.9% to an all-time high after the sneaker maker forecast fiscal sales for the full year above Wall Street estimates, helping the Dow gain 0 , 69%.
* The latest data on personal consumption spending (PCE) shows that a measure of core inflation rose less than expected in May. The core PCE rose 3.4% year-on-year, still above the Fed’s 2% soft target.
* The data is “giving people a breath of fresh air and inflation fears may be a bit overblown,” said Thomas Hayes, president of Great Hill Capital LLC.
* Investors are also bracing for what is likely to be the biggest trading event of the year as the FTSE Russell rebuilds its indices, which could reflect a wild trading year marked by the pandemic and “meme” stock craze.
* The S&P 500 and Nasdaq were heading for their best week in 11 after a legislative infrastructure deal and reassuring words from Fed Chairman Jerome Powell calmed nerves after a surprise at the central bank meeting from last week.
* “They had this divergence of views among the members of the Fed, and what everyone seems to forget is that President Powell is driving the bus and has the pedal down,” Hayes said.
* The S&P Bank Index rose 1.2% after the Fed announced that large financial institutions have passed the latest solvency test and will no longer have to face pandemic-era restrictions to buy back stocks and pay dividends.
Continue reading the story
* Nine of the top 11 S&P sectors rose, with financials, commodities and health among the top earners.
* The luxury consumer sector, which is home to some of the large-cap tech companies like Tesla Inc and Nike, rose the most.
* The Dow Jones Industrial Average rose 235.96 points, or 0.69%, to 34,432.78, and was preparing for its best weekly performance since mid-March.
* The S&P 500 was up 11.77 points, or 0.28%, at 4,278.26 and the Nasdaq Composite was up 2.91 points, or 0.02%, at 14,372.62.
(Report by Medha Singh in Bengaluru. Edited in Spanish by Javier López de Lérida)