By Noel Randewich and Medha Singh
Jun 25 (.) – The S&P 500 ended the week at an all-time high on Friday, boosted by shares in Nike and several banks, on a day when weaker-than-expected inflation data eased concerns about a sudden reduction of stimulus by the Federal Reserve.
* Nike Inc. rose to an all-time high after the sneaker maker forecast fiscal sales for the full year above Wall Street estimates, helping the Dow close the biggest gain among the major indices.
* Bank of America and Wells Fargo rose after the Fed announced that large banks had passed solvency tests and would no longer have to face pandemic-related restrictions to buy back shares and pay dividends.
* The S&P 500 financial index was one of the best performing among the 11 sectors.
* “Today is a bit of profit-taking in technology and a relocation to the banks after the results of the solvency tests,” said Dennis Dick, a self-employed trader at Bright Trading LLC, adding that he expects banks to announce an increase in dividends soon.
* The Senate bipartisan deal on infrastructure spending, joined by US President Joe Biden on Thursday, continued to boost stocks, with commodity and industry indices rising and helping the S&P 500 outperform the Nasdaq. .
* “The positive news from the infrastructure package favors the S&P 500 more than the Nasdaq. The Nasdaq does not put cement on roads or put steel on bridges. That does the S&P 500,” said Jake Dollarhide, CEO of Longbow Asset Management.
* The latest data on personal consumption expenditure (PCE) showed that a measure of inflation rose less than expected in May. The core PCE rose 3.4% year-on-year, still above the Fed’s 2% soft target.
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* Investors expected the session to be one of the busiest of the year as the FTSE Russell will revise its indices after a wild trading year marked by the pandemic and “meme” stocks.
* The Dow Jones Industrial Average rose 0.69% to 34,433.84 points, while the S&P 500 gained 0.33% to 4,280.69 points. The Nasdaq Composite was down 0.06% to 14,360.39 points.
For the week, the S&P 500 gained 2.7%, the Dow added 3.4% and the Nasdaq rose 2.4%. The S&P 500 had its best weekly performance since early February, and the Nasdaq since April.
(Report by Medha Singh in Bengaluru. Edited in Spanish by Javier López de Lérida)