The S&P 500 headed toward a new record after fresh data showed a drop in jobless claims and a rise in orders for durable goods.
The S&P 500 added 0.6% by mid morning, on track for a closing high. The Dow Jones Industrial Average gained 240 points, or 0.7%. The tech-heavy Nasdaq Composite rose 0.8%, also on track for a high.
Stocks have risen this week and market volatility has collapsed, reflecting investors’ easing concerns about higher inflation and tighter monetary policy. Money managers are growing more assured that interest rates won’t rise for a while: that has sent technology stocks roaring higher in recent days and pushed the Nasdaq Composite Index to a fresh high.
“In the context of strong growth, markets can digest slightly less supportive monetary policy,” said Sebastian Mackay, a multiasset fund manager at Invesco. “The outlook for earnings is still pretty strong, I think central banks can afford to think about removing some of what’s been put in place.”
The S&P 500’s tech sector outperformed the broader market on Thursday, adding 0.9% in recent trading. The revival in stocks offering potentially high future growth marks a sharp shift. In recent months, investors piled into corners of the market that would benefit from rising bond yields and an improving economy, like the energy and financials sectors within the S&P 500.