A strong recovery in tech companies pushed stocks to the brink of a record on Thursday, all while traders evaluated yet another series of economic reports and income statements.
The S&P 500 index, for instance, showed the largest three-day gain since April, closing 0.47% higher than the previous day. Apparently, tech giants such as Apple and Microsoft rallied, while companies that are closely linked to the broader resumption of business performed poorly.
At the same time, growing expectations on corporate earnings eased concerns on the spike in coronavirus infections.
Strong growth in US home sales also encouraged investors, although there was an unexpected surge in weekly jobless claims.
And as earnings continue to rise, US stocks are regaining their leading position in global markets. This is evidenced by the ratio between the S&P 500 and S&P Global, which are quoted outside the United States. After falling 10.4% between September and February, the ratio rose to a record high on July 9 and again on Tuesday.
Other important events for this week are:
- data on manufacturing activity in Germany (Friday);
- data on US manufacturing activity (Friday);
- Summer Olympic Games in Tokyo (Friday).