Dow Jones, S&P 500, and Nasdaq advanced as investors remain optimistic about economic recovery

Written by: Stanko Iliev
April 18, 2021
  • For the week, the Dow Jones advanced 1.2%, the S&P 500 1.4%, and the Nasdaq 1.1%
  • The Dow Jones Industrial Average and S&P 500 reached record highs last week
  • The Nasdaq Composite closed less than one percent below its all-time high

The U.S. stock market ended higher on Friday, and Wall Street’s three main indexes advanced as investors took solid economic data and bank earnings as signs of momentum in the U.S. pandemic recovery. The Dow Jones Industrial Average and S&P 500 posted their fourth straight week of gains, while the Nasdaq Composite closed less than one percent below its all-time high.

The U.S. policymakers said they expect a rise in inflation, but despite this, they will have a focus on ensuring that the labor market makes a full recovery. The Federal Reserve will probably keep interest rates unchanged in 2021 even though the U.S. economy continues to recover from the pandemic.

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“Investor confidence on the road ahead seems steady, and everyone is looking at just how far we can run before we start raising interest rates. Until we see that significant inflation growth and the Fed starts to talk about raising interest rates, I think it’s going to be goldilocks conditions,” said George Catrambone, head of America’s trading at DWS Group.

The U.S. policymakers said once again that the stimulus program would remain in place until the economy recovers to levels before the pandemic. The Fed chief Jerome Powell said that reducing the bond-buying program will become “well before” a rate hike, but this will not happen in the near term.

S&P 500 up 1.4% on a weekly basis

For the week, S&P 500 (SPX) booked a 1.4% increase and closed at 4,185 points.

Data source: tradingview.com

S&P 500 advanced above 4,190 points last trading week, but if the price falls below 4,000 points, it would be a strong “sell” signal, and we have the open way to 3,800 points.

DJIA up  1.2% on a weekly basis

The Dow Jones Industrial Average (DJIA) advanced 1.2% for the week and closed at 34,200 points.

Data source: tradingview.com

The Dow Jones Industrial Average advanced to record highs last week, and if the price jumps above 34,500 points, it would be a bullish confirmation for this index. On the other side, if the price falls below 33,000 points, it would be a firm “sell” signal, and the next target could be around 32,000 points.

Nasdaq Composite up 1.1% on a weekly basis

 The Nasdaq Composite (COMP) gained 1.1% on a weekly basis and closed at 14,052 points.

Data source: tradingview.com

The Nasdaq Composite closed less than one percent below its all-time high, and if the price jumps above 14,200 points, it would be a bullish confirmation for this index. The current support level stands around 13,500 points, and if the price falls below this level, it would be a strong “sell” signal, and we have the open way to 13,000 points.

Summary

The Dow Jones Industrial Average and S&P 500 reached record highs last week, while the Nasdaq Composite closed less than one percent below its all-time high. The Federal Reserve will probably keep interest rates unchanged in 2021 even though the U.S. economy continues to recover from the pandemic.