Wall Street Inches Up to Higher Close Amidst Uncertainty in Economic Data and Corporate Earnings

The stock market displayed a mixed performance as Wall Street inched up to a higher close, with a modest build-up on a two-day rally. The S&P 500 and the Dow's gains were muted due to a pull-back in economically sensitive cyclicals, while small-caps underperformed their larger rivals. Megacap tech and tech-adjacent stocks such as Microsoft, Amazon, Apple, Facebook, and Alphabet rose ahead of their quarterly results, putting the Nasdaq out front. The market's focus shifted back to growth stocks, which outperformed throughout the health crisis, gaining 0.8 per cent, while the value index slipped by 0.5 per cent.

Key Takeaways:

• The S&P 500 and the Dow's gains were muted due to a pull-back in economically sensitive cyclicals, with the Dow Jones Industrial Average rising 25.35 points, or 0.07 per cent, to 34,823.35.
• Small-caps underperformed their larger rivals, with tech being the shining sector, gaining 0.7 per cent among the 11 major sectors of the S&P 500.
• Megacap tech and tech-adjacent stocks such as Microsoft, Amazon, Apple, Facebook, and Alphabet rose ahead of their quarterly results, putting the Nasdaq out front.
• The number of US workers filing first-time applications for unemployment benefits spiked unexpectedly to 419,000 last week, a two-month high, according to the Labor Department.
• The upcoming Federal Reserve meeting could be impactful, as market participants are closely watching labour market indicators for hints as to when the Fed will begin discussions about hiking key interest rates from near zero.
• Benchmark Treasury yields eased after the bid at the largest-ever TIPS auction touched a record low, pressuring rate sensitive banks.