NEW YORK, Aug 20 (Reuters) – Wall Street capped a tumultuous week with a broad-based rally as investors largely shrugged off the looming threat of the COVID-19 Delta variant and signals from the U.S. Federal Reserve that it could begin tightening its dovish monetary policy sooner than expected.
While all three major U.S. indexes were in positive territory, all were on course to post weekly losses after a steep sell-off pulled the S&P 500 and the Dow Industrial away from a string of record closing highs.
“We’ve seen some profit taking since Aug. 16, and today we’re seeing some buying on that dip, in the belief that we´re still headed higher,” said Tim Ghriskey, chief investment strategist at Inverness Counsel in New York.
Market-leading tech and tech-adjacent megacaps, which weathered the pandemic recession better than most, were once again doing the heavy lifting.
Growth stocks were also given a boost by U.S. Treasury yields, which were on track end the week lower due to concerns the health crisis could be a longer than expected hindrance to economic revival.