For the week, the DJIA was up 1.4% to 33,072.88 and the S&P 500 gained 1.6% to close at 3,974.54, while the Nasdaq slipped 0.6%, closing at 13,138.73.
S&P Global Economics now sees the risk of recession at 10% to 15% for the next 12 months, compared with 20% to 25% in January, as it increased its GDP growth outlook to 6.5% in 2021 and 3.1% in 2022, from 4.2% and 3%, respectively, in its December outlook.
Treasury Secretary Janet Yellen on Wednesday said U.S. banks look healthy enough to be allowed to pay dividends and repurchase stock, reflecting growing confidence in a recovery.
Durable goods new orders fell by 1.1% in February but is likely to rebound in March. Durable goods shipments fell by 3.5% and were down 1.2% outside of transportation.
March Markit Flash Manufacturing and Services Measures were up in February, following stronger regional manufacturing sector readings from NY, Richmond, and Phila Federal Reserve banks.
The Kansas City Fed monthly manufacturing index rose to a reading of 26 in March from a 24 print in February.
TSA said it screened 1.54 million air travelers Sunday, the highest single day since March 13, 2020 and the 11th consecutive day exceeding 1 million per day.
Existing Home Sales fell by 6.6% in February to a 6.22 million annual rate compared with a 2.8% decline expected and following a 6.66 million rate in January, but a record low level of inventories helped keep the median sales price elevated.
California's two U.S. senators are urging President Biden to set a firm date to phase-out gas-powered passenger vehicles.
Two senior U.S. Senate Democrats urged President Biden's administration on Tuesday to make a full diplomatic push to stop the Nord Stream 2 natural gas pipeline from Russia to Europe.
According to Biden advisers, infrastructure, job spending push could hit $4 trillion. The Biden administration plans to release its discretionary funding request for 2022 next week, with a full budget proposal to be announced later this spring.
U.S. Senate confirms Marty Walsh, son of Irish immigrants, as next labor secretary in a win for unions.
Volvo and Ford Motor Co. have both indicated that a shortage of semiconductors would have a substantial impact on production in the second quarter. GM also extended their production cuts.
Intel to spend $20 billion on U.S. chip plants as CEO challenges Asia dominance.
Microsoft is in talks to buy Discord Inc, a messaging platform for gamers, for more than $10 billion.
Canada recommends AstraZeneca vaccine despite U.S. criticism of trial data.
Fed Chair Jerome Powell told lawmakers on Tuesday that inflation risk remains low. Powell also said, “We have the tools to deal with that” it if becomes a problem.
The Philadelphia Federal Reserve Bank's monthly non-manufacturing index surged to 38.6 in March from 3.9 in the previous month, indicating widespread expansion in the sector.
The Federal Reserve will establish a new panel to assess and address risks to financial stability from climate change.
Sales of new U.S. single-family homes fell to a nine-month low in February. Expensive lumber and rising mortgage rates could cool the housing market this year.
Coal India Ltd, the world's largest coal miner, could venture into solar wafer manufacturing and is eyeing further mine closures.
Demand for U.S. Treasuries tested this week as $183 billion of notes are auctioned.
Robinhood has submitted plans to regulators for a U.S. initial public offering, the company disclosed on Tuesday.
Initial jobless claims fell more than expected last week, with filings coming in at the smallest amount since the nationwide shutdown that took place a year ago due to the COVID-19 pandemic.
The COVID-19 pandemic Paycheck Protection Program (PPP) was extended on Thursday until the end of May, giving small businesses more time to apply and the government more time to process requests.
Weekly Recap: Wall Street rallies on strong recovery hopes
Today on Wall Street, the Dow Jones Industrial Average rose 453.4 points, or 1.39%, to 33,072.88, the S&P 500 gained 65.02 points, or 1.66%, to 3,974.54 and the Nasdaq Composite added 161.05 points, or 1.24%, to 13,138.73.
Consumer spending, which accounts for more than two-thirds of U.S. economic activity, dropped 1.0% last month amid a broad decline in purchases of goods, the Commerce Department said on Friday. That followed a 3.4% rebound in January.
Personal income tumbled 7.1% after surging 10.1% in January. Economists polled by Reuters had forecast consumer spending would decrease 0.7% in February and income would decline 7.3%.
When adjusted for inflation, consumer spending decreased 1.2% last month after jumping 3.0% in January.
2.5% increase in the goods trade deficit to $86.7 billion in February, the second highest on record, was reported by the Commerce Department in another report on Friday.
Income last month was depressed by a 27.4% plunge in government transfers. Wages were also flat. The saving rate fell to a still-high 13.6% from 19.8% in January, with economists expecting some of the cash from the latest stimulus checks will be saved.
The Michigan Consumer Sentiment index for March was revised up to 84.9 in the final estimate from 83 in the preliminary reading, keeping it above the 76.8 print in February. The university said the improvement in March was due to passage of the newest stimulus package and a faster-than-expected rollout of vaccines.
State-level data released by the Bureau of Labor Statistics show the unemployment rate fell in 23 states in February, rose in 4 states and held steady in the rest.
Basically, the pace of labor-market improvement has stalled so far this year, with unemployment ticking down only slightly and job gains slowing.
Non-farm payrolls increased in 11 states in February, compared with declines in only 3 states, with payrolls in the rest of the states virtually unchanged.
The New York Fed revised down its first-quarter GDP growth estimate to 6.05% from 6.26% a week ago, the St. Louis Fed revised down its estimate to 11.04% from 11.55%, and the Atlanta Fed revised down its estimate to 4.7% from 5.4% earlier in the week.
The New York Fed revised down its estimate for second-quarter GDP to 0.7% from the 1.17% rate that it reported last week.
The Kansas City Federal Reserve's monthly composite services index rose to a reading of 22 in March from 1 in February, suggesting significant expansion. The Institute for Supply Management's services index will be released April 5.
Gold closed higher on Friday despite a rising U.S. dollar rose again and higher bond yields. Gold for June delivery settled up US$7.40 to US$1,734.70 in Comex trade. Copper for March delivery lost 4.50 cents per pound, or 1.09% to $4.0785 this week. Silver for March delivery lost $1.2000 per troy ounce, or 4.56% to $25.092 this week.
Large funds increased positions in corn futures for the week ended March 23, according to data released Friday. U.S. wheat futures fell to hit a three-month low on Friday, as favorable weather across major producing regions pushed the grain towards weekly losses of nearly 3%.
The ICE dollar index was up 0.245 to 92.77, near a four-month high, while the yield on the U.S. 10-year note was up 3 basis points to 1.664%, according to Action Economics.
The dollar rose to a nine-month high against the Japanese yen of 109.44 yen, reflecting investor expectations of robust U.S. economic growth as the nation accelerates its vaccine rollout. Overall, the dollar index, which measures the greenback against a basket of six major currencies, fell 0.123%, with the euro up 0.28% to $1.1797.
U.S. energy firms added oil and natural gas rigs this week, with the total count rising for an eighth month and a second quarter in a row as higher oil prices prompt drillers back to the wellpad. In the first quarter of 2021, the total rig count is up for a second quarter in a row for the first time since the fourth quarter of 2018.
U.S. crude rose 3.89% to $60.84 per barrel and Brent was at $64.45, up 4.04% on the day.
Health care stocks made narrow gains Friday afternoon, overcoming earlier declines. The Nasdaq Biotechnology index also gained 0.9%.
Investors looking for ways to protect themselves from a potential market downturn and rising inflation have been warming to utilities, sometimes seen as bond substitutes, as attractive alternatives. Utilities tend to do better in a downturn because they pay dividends and offer stability.
Financial stocks advanced Friday afternoon, led by big banks, after the Federal Reserve said it will lift COVID-19 restrictions on payouts for most institutions by the second half of 2021.
After a seesaw week, the S&P 500 and Dow rose in a broad-based advance on Friday with technology, healthcare and financial stocks providing the biggest lift. The Nasdaq also ended higher, lifted by less popular tech shares, as the composite index posted its second weekly decline in a row.
Many of the tech giants lost ground, including Tesla, Apple, Amazon, and Google, but Microsoft and Facebook came through higher.
For the week, the Dow Jones Industrial Average was up 1.4% to 33,072.88 and the S&P 500 gained 1.6% to close at 3,974.54, while the Nasdaq Composite slipped 0.6%, closing at 13,138.73.