Dow Tops 34,000 for First Time in Record Rally

Strong quarterly earnings and a promising economic outlook fueled the rally.

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Dow-Tops-34,000-for-First-Time-in-Record-Rally

The Dow Jones Industrial Average topped 34,000 for the first time on Thursday amid robust earnings reports by major companies and promising economic data, which hinted at a rebound in employment and consumer spending.

The Dow soared by 305.10 points to a close of 34,035.99, crossing a record milestone past 34,000. The S&P 500 also had a record high trading day, gaining 1.1 percent and settling at 4,170.42. The Nasdaq also advanced by 1.3 percent to a stealth 14,038.76.

Amid the record rallies, bond yields lagged while technology stocks rebounded. FAANG shares each rose by more than 1 percent. FAANG stands for Facebook, Amazon, Apple, Netflix, and Alphabet.

Meanwhile, the 10-year Treasury yield fell by eight basis points to 1.56 percent. The rates were higher at the beginning of the year, causing investors to shed stocks set to grow.

During March, retail sales rose by 9.8 percent amid another stimulus by the government that propelled consumer spending, which had a gain of 6.1 percent.

First-time unemployment filings have also fallen to their lowest level since March of last year. According to the U.S. Labor Department, there were 576,000 new unemployment claims for the week ending April 10. Economists had anticipated 710,000 new jobless claims.

UnitedHealth shares rose 3.8 percent after its first quarter-results beat Wall Street analysts’ forecasts, prompting the health insurance company to raise its guidance for 2021.

Pepsi also had slightly higher shares at 0.1 percent once the beverage conglomerate announced that its last-quarter revenue rose by almost 7 percent, exceeding estimates by analysts.

Recent trading sessions have been earmarked for new records against the backdrop of trillions in stimulus dollars and reopening the economy. 

Bank shares are also seeing positive last quarter results. But Citigroup and Bank of America saw shares dip on Thursday by 0.5 percent and 2.9 percent, respectively.

Cryptocurrency exchange Coinbase also closed down by 1.7 percent amid a day of volatility.

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