The Dow Jones closed above the 35,000 level for the first time on Friday as Wall Street recovered from a rocky week fueled by fears surrounding the Delta variant.
US stocks rose before the closing bell, with all three indices roaring from a massive sell-off early in the week to close at record highs after major companies reported better-than-expected financial results.
The Dow Dow rose 238.20 or 0.7 percent to 35,061.55, marking the first time the Dow crossed 35,000.
The S&P 500 index climbed 44.31, or 1 percent, to 4,411.79, surpassing its previous record early last week, while the Nasdaq Composite gained 152.39, or 1 percent, to close at 14,836.99.
All three indices ended with gains of better than 1 percent for the week.
The reversal comes after Wall Street suffered a sharp downturn on Monday, with the Dow posting its worst day since October.
The Nasdaq Composite and S&P 500 also recorded their worst days since May, with the latter cutting 1.6 percent off the index.
The Dow Jones closed above the 35,000 level for the first time on Friday as Wall Street recovered from a rocky week fueled by fears surrounding the Delta variant
The strong end to a turbulent week was prompted by large companies reporting better-than-expected gains and investors who again saw a dip in stocks as just an opportunity to buy low.
Shares in Moderna rose 7.8 percent after the European Union approved its COVID-19 vaccine for 12 to 17-year-olds.
American Express gained 1.3 percent after posting a second-quarter profit that beat expectations on the back of a global consumer spending recovery.
Meanwhile, social media companies Twitter and Snap rose 3.0 percent and 23.8 percent, respectively, thanks to their positive results.
Those results bode well for Facebook, which will release its second-quarter results next week and saw its own stock rise 5.3 percent.
Monday’s drop was driven by concerns about a potentially sharp slowdown in the economy due to an increase in COVID-19 cases and the spread of the more contagious Delta strain.
The strain is now responsible for 83 percent of new daily infections and has been blamed for an increase in cases across the country.
In the past two weeks, the number of cases has nearly tripled, from 16,181 new cases on average on July 8 to 45,343 on July 22.
Concerns that the increased outbreak would hamper the economy led investors to pull out of stocks early in the week.
The Nasdaq Composite gained 152.39 or 1 percent to close at 14,836.99 as all three indices finished with gains better than 1 percent for the week
The S&P 500 index climbed 44.31, or 1 percent, to 4,411.79, surpassing its previous record high at the beginning of last week.
But the indices then climbed throughout the week.
For the S&P500, companies are on track to report earnings growth of about 74 percent in the second quarter from a year earlier, according to FactSet.
That would be the strongest growth since the economy exploded out of the Great Recession in late 2009.
The economy continues to recover at a rapid pace, with the question of how much growth will slow down in the coming months and years.
A preliminary report from IHS Markit on Friday indicated that US manufacturing growth could unexpectedly accelerate in July, although service sector growth appears to be slowing more than economists had expected.
Monday’s drop was driven by concerns about a potentially sharp slowdown in the economy due to an increase in COVID-19 cases and the spread of the more contagious Delta strain
The 10-year Treasury yield gave up some of its gains after the report was released, but it still rose to 1.27 percent from 1.26 percent at the end of Thursday.
For months, it has sounded worrisome alarms about the economy as it fell from a top position of around 1.75 percent in late March.
Concerns about inflation have also increased, which has increased recently.
But companies have nevertheless managed to maintain their profits, often by raising their own prices.
Jay Hatfield, CEO of Infrastructure Capital Advisors, said the main concern for Wall Street looking to 2021 and next year is the potential for “stagflation.” s
Then inflation continues to rise while economic growth stagnates.
Most analysts expect growth to continue to moderate as the pandemic fades and the US government and Federal Reserve ease their support.
‘How do we get from hypergrowth to stagflation, how do you price that in?’ he said. “That’s a key overhang.”
But indices then climbed throughout the week as major companies reported better-than-expected gains and investors once again saw a dip in stocks as just an opportunity to buy low. The New York Stock Exchange on Wall Street Friday