Another day, another record close for the S&P 500 as the Fed eases inflation concerns

• US equity markets saw a late rally despite the lack of fundamental catalysts at that time on Friday.
• Some desks mentioned that the Fed’s jaw dropped on how the next surge in inflation will be transitory as a support for stocks.
• The S&P 500, Dow and Nasdaq 100 achieved record closing levels.

The American Stock Markets saw a late rise despite the lack of fundamental catalysts at that time on Friday. That meant the S&P 500 was able to close at a new high at 4,127 (up 0.7% on the day), the Dow managed to hit the 33,800 mark (up 0.9% on the day), also a record. Meanwhile, while the Nasdaq 100 failed to hit an all-time intraday high, it managed to post a record close at 13,845 (up 0.6% on the day). The Russell 2000 was flat and the CBOE saw a slight decline from 0.38 to just over 16.50.

In terms of the GICS sectors; There was no clear risk bias in the performance of the sectors. Healthcare and industrials performed the best, technology, finance, materials, communication services and real estate won, consumer staples and utilities were stable, and energy was lower. A modest rise in US government bond yields didn’t have much of an impact on duration-sensitive growth and tech names. In terms of individual moves, Amazon performed prominently, gaining 2.2% after winning a union government vote.

Looking ahead, then, if stocks have heeded the Fed’s “don’t worry about inflation” message, a strong CPI reading next Wednesday shouldn’t cause too much concern. Meanwhile, retail sales figures for March should show an explosion in spending, as Americans each received another $ 1,400 in direct government checks that month. A massive number shouldn’t come as a surprise to equity investors, but it can still support the growing sense of economic optimism regarding the US recovery, which (as long as the Fed remains dovish, which it is) is just somewhat. good for confidence right now.