Growth and value rally as inflation fears settle
One year after the World Health Organization declared Covid-19 a pandemic, North American stocks rallied across the board. On Thursday, the S&P and Dow both made all-time highs, up 1.04% and 0.58% respectively, but the tech-heavy Nasdaq opened strong and stayed high to the close (unlike Wednesday), topping 2.52%. It was a rare session where growth as well as value names shone. Drivers were President Biden signing his US$1.9 trillion stimulus bill, the encouraging vaccination drive, and the European Central Bank pledging to buy more bonds.
Also, U.S. weekly unemployment claims came in lower than expected in a four-month low as the ongoing reopening added more jobs. The sum result was the U.S. 10-year rising 0.46% to 1.527%, which didn’t rattle investors. These were the ingredients for the optimism which allowed megacap tech stocks to roar back: Alphabet 3.16%, Tesla 4.72%, Nvidia 4.21% and Facebook 3.39%. Outside tech, FedEx added 3.1% and Nike 2.62%.
In Canada, the TSX rode the wave by climbing another 0.83% to make an all-time high, just 156 points shy of 19,000. Tech, materials and energy led the charge, though cannabis stocks soared. OrganiGram rocketed 40% after British American Tobacco bought a 19.9% stake. Aphria and Hexo nearly popped 11%. Other gainers: Linamar 10.8%, Hudbay Minerals 9.82% and tech newcomer Nuvei leaping 11.21%. Gold was flat, but Bitcoin inched up another 2.3% to make yet another new high above $57,000. Lastly, the price of WCS and WTI both gushed 2.4% to cap a banner day.
🧮 Alphabet Inc. / Google +3.16%
🚗 Tesla Motors Inc +4.72%
💻 Nvidia Corp +4.21%
🕵️♂️ Facebook +3.39%
📦 FedEx +3.1%
👟 Nike Inc +2.62%
🌿 OrganiGram Holdings Inc. +40%
🚬 British American Tobacco +19.9%
🌿 Aphria Inc +11%
🌿 Hexo Corp +11%
🚘 Linamar Corp +10.8%
⛏ Hudbay Minerals Inc. +9.82%
💳 Nuvei Corp +11.21%
🅱 The Bitcoin Fund +2.3%