US stock market earns $ 6 billion as Facebook and Apple climb
Some of the world’s biggest tech companies have driven the US stock market to a new record this week, extending a rally that has already added $ 6 billion in value to the stock market this year.
Bloomberg reported that after hovering between gains and losses for most of the session, the US S&P 500 rose on news that Facebook Inc. had secured two monopoly lawsuits dismissed.
Some of the stay-at-home businesses like Apple Inc., Amazon.com Inc., and Zoom Video Communications Inc. have soared as the stimulus business declined.
The S&P 500 is the index that tracks the 500 largest US companies in terms of market capitalization.
Cruise lines and airlines have reportedly sank as governments from Europe to Asia impose new limits on travel from Britain, which is seeing an increase in coronavirus cases.
As US stocks are on track for one of their best early halves in history, the debate over high valuations is coming to the fore. The S&P 500 is trading above the past decade average, and this quarter potentially marks the peak of a profit recovery from the depths of the pandemic.
Bloomberg also said demand for loss protection over the next several months has increased in the US options market.
John Stoltzfus, chief investment strategist at Oppenheimer, reportedly wrote to clients saying: “Investors should not be looking to push stocks up in a straight line, but rather prepare for the economic recovery that is taking shape.”
“We are looking for progress, not perfection in economic data this week, with the possibility of disappointments giving rise to volatility, and with better-than-expected results that may provide positive offsets,” he said. .
Bloomberg said traders will sift through readings on consumer confidence, housing, manufacturing and the labor market during the week, with Friday’s jobs report expected to show mass growth accelerating salary.
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