The S&P 500, which rallied for the seventh straight session on Friday, is on track for its best August in 34 years, partly powered by a rally in technology stocks, prospects of super-low interest rates for a prolonged period, and hopes of a medical solution to the COVID-19 pandemic.
The tech sector’s 0.6% rise provided the biggest boost to the benchmark index… “Technology has kind of become the recession play. With everybody piling in into it, the momentum is certainly on technology’s side,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago. The Federal Reserve on Thursday unveiled a plan to support inflation and restore the U.S. economy from its biggest downturn since the Great Depression.
Data on Friday showed U.S. consumer spending increased more than expected in July… Progress in the race to develop treatments and vaccines for COVID-19 have also added to the cheer. Johnson & Johnson’s Janssen unit said it would expand testing for its experimental coronavirus vaccine to Spain, the Netherlands and Germany next week.
Meanwhile, the U.S. election campaign entered its final stretch with U.S. President Donald Trump’s Republican nomination for a second term. Analysts expect market volatility to increase again ahead of voting in November.
Tesla Inc and Apple Inc rose 1.7% and 0.3% ahead of their stock splits that take effect on Monday.
MacDailyNews Take: Back in March, who would have thought the S&P 500 would on track for its best August in 34 years?