After a tempestuous week on Wall Street, the stocks were back up and each index closed at record highs, reinforcing Presiden Joe Biden’s economic strategy amid the spiking rates of COVID-19 cases across the nation.
The Dow closed 0.7%, or 238 points, higher, finishing above 35,000 for the first time ever, CNN reports. The S&P and the Nasdaq both climbed 1%.
While the rising cases of coronavirus could mean prolonged disruptions for already strained supply chains, investors are confident the economy will remain strong.
“Although the [Delta] variant has punctured the ‘vaccine euphoria’ that was prevalent in the market several months ago, investors seem convinced that economies will continue to open up gradually despite the new variant,” said Marshall Gittler, head of investment research at BDSwiss Group, in a note to clients.
And indeed, the market worked on recovering from Monday’s losses for the rest of the week. On Friday, as stocks headed higher, the 10-year US Treasury yield was at 1.28% around the stock market close on Friday. Bond yields and prices move inversely to each other.
As noted by CNN, economic data was very encouraging for investors as well. “A preliminary reading of IHS Markit’s July purchasing managers’ index showed manufacturing at a record high for the data series, beating economists’ expectations.”