Dow closes above 35.000 for the first time

 

Dow closes above 35.000 for the first time

It's been a good week on Wall Street, which kicked off a massive sell-off due to concerns about the delta variable. But by Friday, stocks had rebounded, and every index closed at record levels.

The Dow closed 0.7% higher, or 238 points, to finish above 35,000 for the first time. S&P and Nasdaq both gained 1%.

The market was deep in the red on Monday, and the Dow had its worst day since last October. The S&P 500 and Nasdaq Composite recorded their worst performance since May.

Fearing that a spike in Covid-19 cases and a shift in the more contagious delta would stifle the economic recovery, investors backed away from stocks. They fled to the relative safety of government bonds.

Marshall Gettler, head of investment research at BDSwiss Group, said: "Although the alternative has broken through the ''vaccine euphoria'' that has been in the market for several months now, investors seem convinced that economies will continue to open up despite the new alternative in note gradually to customers.

Indeed, the market worked to recover from Monday'sMonday's heavy losses for the rest of the week. But that doesn't mean delta concerns are entirely ignored. The increased cases could mean long-term disruptions to already strained supply chains.

One thing is for sure: the delta variable brings more uncertainty to the market.

Over the past few weeks, bond yields have plummeted as investors flock to haven investments. With stocks rising, the 10-year US Treasury yield was at 1.28% near the stock market's close on Friday.

However, on the services front, it did not look good: the advanced services PMI performed well below expectations and fell to its lowest level in five months.