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Wall Street heads for 2nd weekly gain; markets see historic highs

Meanwhile, many analysts have warned of a near-term pullback. (Photo for representation)

The averages of major stock indexes continued for their second consecutive weekly gain on Friday, while recovering from an early weakness.

The S&P 500 drifted higher on Friday as financial and materials stocks gained ground. Investors, too, held out for signs of progress on the next batch of fiscal aid.

As investors favoured names likely to benefit from a reopened economy, value stocks outperformed large-cap growth stocks.

The main stock indexes opened lower, weighed down by heavyweights Apple Inc, Tesla Inc, and Inc.

It is said that a sharp drop in fresh coronavirus cases and hospitalisations in recent weeks have also driven markets to historic highs.

“Low interest rate, stimulus, and improvement on the coronavirus front providing greater confidence for investors to stay in the market and buy more,” says Rick Meckler, Cherry Lane Investments in New Jersey.

However, many analysts have cautioned of a near-term pullback amid risks from new coronavirus variants and potential bumps in Covid-19 vaccine distribution.

The S&P 500 posted 47 new 52-week highs and no new lows, while the Nasdaq recorded 307 new highs and 22 new lows, as per reports on Friday.

(With inputs from agencies)