US Stocks: Wall Street extends recovery after strong business surveys

By: |
May 21, 2021 9:09 PM

Every major S&P sector was higher, with economy-linked financials and energy providing the biggest boost.

US Stocks: Wall Street extends recovery after strong U.S. business surveysBitcoin hovered around $40,000, pausing its attempt to recover from this week's massive plunge. (AP Photo/File)

Wall Street’s main indexes rose on Friday, extending a recovery from the previous session, as strong U.S. factory and services activity surveys lifted the mood at the end of a volatile week of trading.

IHS Markit’s data showed U.S. business activity picked up in May amid strong domestic demand, but backlogs of uncompleted work are piling up as manufacturers struggle to find raw materials and labor.

Wall Street’s main indexes gained ground on Thursday following a three-day slump after data showed the fewest U.S. weekly jobless claims since the pandemic-driven recession in 2020, pointing to a pick up in labor market.

The stock market recovery was led by tech-related mega-cap shares, putting the Nasdaq on course to snap a four-week losing streak.

“After some pressure in the start of the week we can see some buying interest in beaten-down mega-cap tech names as their valuations seem to look a bit more attractive,” said Robert Pavlik, senior portfolio manager at Dakota Wealth in New York.

“The market would also focus on how cryptocurrencies perform, and if they fall even more, it could spark off some selling going ahead.”

Bitcoin hovered around $40,000, pausing its attempt to recover from this week’s massive plunge.

Cryptocurrency-related stocks Coinbase Global, Riot Blockchain and Marathon Digital Holdings firmed between 1.0% and 2.3%.

Every major S&P sector was higher, with economy-linked financials and energy providing the biggest boost.

At 10:02 a.m. ET, the Dow Jones Industrial Average was up 286.36 points, or 0.84%, at 34,370.51, the S&P 500 was up 26.39 points, or 0.63%, at 4,185.51, and the Nasdaq Composite was up 67.19 points, or 0.50%, at 13,602.93.

Deere & Co gained 2.6% after the farm equipment manufacturer raised its full-year profit forecast.Foot Locker rose 4.1% after the shoes and apparel retailer posted a more than 80% jump in first-quarter sales.

Advancing issues outnumbered decliners by a 3.58-to-1 ratio on the NYSE and by a 3.34-to-1 ratio on the Nasdaq.

The S&P index recorded 24 new 52-week highs and no new low, while the Nasdaq recorded 73 new highs and five new lows.

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