US stocks are closing on strong gains supported by the recovery in the economy


US stocks closed higher at the close amid a widespread rally, at the close of a strong week dominated by the volatility of buying and selling in light of a race between indicators of economic recovery and growing fears of inflation, according to Reuters.
The three major indices consolidated gains on Thursday, when the Standard & Poor’s 500 jumped its biggest percentage jump in a single session in more than a month.
“Today everything is going up because everyone is buying,” said Chuck Carlson, Senior Vice President at Wealthspire Advisors in New York.
But indices suffered their biggest weekly losses since late February.
Carlson added, “This week, in light of the large volatility, it is the product of the environment of traders and not the environment of long-term investors … it is a market looking for its next sustainable momentum to rise.”
The sharp fluctuations were fueled by a number of economic data, which fueled fears that price booms may turn into long-term inflation, despite reassurances to the contrary from the US Federal Reserve.
“Inflation is still the biggest concern … and when interest rates did not rise to new levels, the bets on rising prices grabbed the reins, and investors showed willingness to enter and buy some of the stocks that fell this week,” Carlson said.
Based on unofficial data, the Dow Jones Industrial Average rose 359.3 points, equivalent to 1.06 percent, to 34,380.75 points, Standard & Poor’s increased 61.24 points, or 1.49 percent, to record 4,173.74 points, and the Nasdaq Composite Index advanced 304.99 points, or 2.32 percent, to 13429.98 points.


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