NEW YORK, New York – U.S. stocks powered ahead on Friday as investors weighed into all sectors, sending the major indices to new record closing highs.
At least one analyst however sounded a note of caution, foreshadowing in the process the possibility of a 10 to 15% correction.
“The market is solidly mid-cycle and with that typically comes a 10-15% index level correction. We expect such a correction will create buying opportunities given a still strong growth backdrop,” CNBC reported Mike Wilson, Morgan Stanley’s chief U.S. equity strategist, telling clients in a note.
“Our economic growth forecasts remain positive, but bigger bulls continue to talk about ‘pent up demand’,” Wilson added. “We agree there is pent up demand for services consumption. We also think the degree of overconsumption in goods and the ensuing payback is under-appreciated as the positive effects on income from stimulus checks and the surge in asset prices fade.”
The Dow Jones rallied 448.23 points or 1.30 percent to finish at 34,870.16, an all-time closing high.
The Standard and Poor’s 500 rose 48.73 points or 1.13 percent to a record close of 4,369.55.
The Nasdaq Composite added 142.13 points or 0.98 percent to establish a new closing record at 14,701.92.
The U.S. dollar cracked under the pressure of rising stocks. The euro surged to 1.1879 approaching the New York close Friday. The British pound jumped to 1.3893. The Swiss franc rose to 0.9136. The Japanese yen remained unchanged at 110.12.
The Canadian dollar was sharply higher at 1.2446. The Australian dollar accelerated to 0.7493 from its low for the day of 0.7427. The New Zealand dollar advanced to 0.7003, from a low of 0.6958.
Overseas, the Paris-based CAC 40 did best, rising 2.07 percent. The Dax in Germany rose 1.73 percent. In London the FTSE 100 climbed 1.30 percent.
On Asian markets, in Japan, the Nikkei 225 let go 177.61 points or 0.64 percent to 27,940.42, Business Sun reported.
China’s Shanghai Composite finished flat, losing just 1.42 points or 0.04 percent to 3,524.09.
The Australian All Ordinaries dropped 69.50 points or 0.91 percent to 7,545.30.
In Hong Kong, the Hang Seng recovered 191.41 of the more than eight hundred points lost on Thursday. The index finished ahead 0.70 percent at 27,344.54.
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