U.S. stocks capped the week with a record close on better-than-forecast earnings. Treasury yields fell after data signalled moderate inflation.
S&P 500 Index closed at an all-time high of 2,939.88 after posting a 1.2% gain for the week following positive surprises from earnings releases. U.S. GDP expanded at a 3.2% annualized rate in Q1, beating estimates of 2.3%. Underlying data indicated softer demand, with weak consumer spending and a gauge of inflation coming in below policy makers’ target.
Despite breaking through to new all-time highs, a note of caution that momentum indicators do not seem to be validating price action. Bearish stochastic divergence has formed, in tandem with decreasing volumes.
S&P 500 Index closed at an all-time high of 2,939.88 after posting a 1.2% gain for the week following positive surprises from earnings releases. U.S. GDP expanded at a 3.2% annualized rate in Q1, beating estimates of 2.3%. Underlying data indicated softer demand, with weak consumer spending and a gauge of inflation coming in below policy makers’ target.
Despite breaking through to new all-time highs, a note of caution that momentum indicators do not seem to be validating price action. Bearish stochastic divergence has formed, in tandem with decreasing volumes.