The stock market had a strong week of gains, as investors continued their buying spree in search of growth stocks. The major U.S. indexes, the Dow Jones Industrial Average, the S&P 500 Index, and the Nasdaq Composite Index, recorded healthy gains, helped by news of further progress in U.S.-China trade talks and optimism that Brexit negotiations will end without too much disruption.
Leading the way were growth stocks, which continue to outperform their more value-oriented counterparts in the current market. Stocks such as tech giants Apple and Microsoft, as well as companies that provide cloud-based services like Amazon, saw substantial gains over the week.
The Dow Jones Industrial Average closed on April 5th with a gain of 331.67 points, or 1.3%, and is now up 6.4% for the year-to-date. The S&P 500 was up 34.41 points, or 1.2%, and is now up 9.2% for the year-to-date. The Nasdaq Composite Index, bolstered by technology-related stocks, gained 110.69 points, or 1.3%, ending the week at 8,507.96 and is now up 15.3% for the year-to-date.
The rally in growth stocks led the way, while the more cyclical value stocks lagged. The small-cap Russell 2000 Index gained 1.6%, while the Dow Jones U.S. Value Index was up only 0.6%. Meanwhile, the Dow Jones U.S. Growth Index gained 2.4%.
The stock market rally continues to show no sign of slowing down, as investors remain optimistic about economic growth and corporate earnings in the face of a potentially less-disruptive Brexit and the ongoing U.S.-China trade talks. With economic data continuing to stay favorable, investors are likely to remain bullish on the stock market with growth-stocks in particular likely to remain in the lead.
