In the global market, stock prices rose last week. As investors were optimistic about the economic recovery and the company’s business prospects, the Wall Street Index reached a new record level.
On Wall Street, the Dow Jones index rose 1.95% to 33,800 points last week, while the S&P 500 index rose 2.7% to 4,128 points, and the Nasdaq index rose 3.1% to 13,900 points.
The new records of the Dow Jones and S&P 500 are largely due to the strong stock prices of major technology companies such as Apple, Microsoft and Amazon.
These stock price increases have also had a positive impact on the Nasdaq Index, which is close to the record level set on February 12.
Last year, because the period of working from home during the corona crisis was suitable for these companies, the technology industry was ahead of the market in terms of stock price increases, but this year lags behind cyclical industries such as industrial, energy, and finance.
However, due to new fiscal stimulus measures and the gradual normalization of social and economic life by covida-19, last week, the technology industry grew strongly, followed by cyclical industries, which are sensitive to economic development, as the recovery from the coronary artery crisis will Speed up quickly.Vaccination
However, due to these stimuli and accelerated economic recovery, there is a risk of rising inflation.
Therefore, it was announced last week that the increase in US producer prices in March exceeded expectations, the highest annual growth rate in nine and a half years.
However, this has not shaken investors, because Federal Reserve Governor Jerome Powell has repeatedly reiterated in recent days that this year’s price increases may be temporary and the central bank will continue to support the economy.
Ken Polcari, a partner at Kace Capital Advisors, said: “Powell has been repeating this all week so that everyone knows that price increases are predictable, which is not surprising. He seems to have managed to make investments The reader is relieved.”
As a result, US government bond yields, which have grown in recent weeks that have worried investors, did not rise last week.
On the contrary, the yield of the reference ten-year bond is well below 1.77%, the highest level since the end of March in 14 months.
Investors will concentrate on publishing the company’s business report for the first quarter of this year in the next few weeks.
Analysts surveyed by Reuters estimated that the revenue of S&P 500 companies increased by about 25% in the last quarter over the same period last year.
On the European Stock Exchange, stock prices rose last week. The London FTSE index rose 2.6% to 6,915 points, while the Frankfurt DAX index rose 0.8% to a record high of 15,234 points, and the Paris CAC rose 1.1% to 6,169 points.