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Dow, S&P 500 Close at Records on More Evidence of Global Recovery

The Dow and S&P 500 set records as soaring growth in China and strong U.S. data give investors reason to believe in a surging post-pandemic recovery.

The Dow Jones Industrial Average and the S&P 500 on Friday closed at records for a second day as soaring growth in China provided investors with further reason to believe in a surging post-pandemic recovery.

The Dow finished up 164 points, or 0.48%, to 34,200, and the S&P 500 gained 0.36% to close at 4,185. The Nasdaq advanced 0.1% to 14,052.

The Dow and S&P 500 also set intraday all-time highs on Friday.

For the week, the Dow rose 1.2%, the S&P 500 gained 1.4%, and the Nasdaq rose 1.1%.

The Dow on Thursday closed at a record 34,035 and the S&P 500 reached an all-time high after U.S. retail sales and jobless claims and solid earnings reports pointed to a recovering domestic economy.

"Stellar jobless claims plus off the charts retail sales pack a positive one-two punch and sends strong signals that the economy is full steam ahead toward recovery," said Mike Loewengart, managing director of investment strategy at E-Trade. 

"While we haven’t necessarily seen the market move on strong economic beats or misses, it’s certainly a step in the right direction. And with earnings season off to a solid start, the case for continued bullishness should not be ignored," Loewengart added.

The yield on the 10-year U.S. Treasury edged higher Friday to 1.576%. The 10-year Treasury note sank Thursday to 1.531%, the lowest in four weeks.

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In China, gross domestic product jumped a record 18.3% in the first quarter. The figures were magnified by comparisons with a year earlier when the economy was locked down because of the coronavirus outbreak.

Economists expect the brisk expansion in China, the world's second-largest economy, to moderate as manufacturing and consumer spending return to normal.

Jim Cramer: Tensions Between the U.S. and China Continue to Rise

Morgan Stanley  (MS) - Get Morgan Stanley Report posted much stronger-than-expected first-quarter earnings on the strength of record wealth management inflows and surging investment banking revenue. Wealth management inflows surged to a record $105 billion during the quarter. 

The company also unveiled a $900 million loss linked to the collapse of Archegos Capital, with CEO James Gorman saying the cost of derisking from the failed hedge fund was "money well spent."

Bitcoin tumbled Friday after Turkey's central bank issued a ban against the use of cryptocurrencies for payments in the country starting from the end of the month.

In a statement, the Central Bank of the Republic of Turkey said it will ban bitcoin and other non-fiat currencies from being used for several reasons, including a lack of "supervision mechanisms" and "central authority regulation" for crypto assets.

The cryptocurrency declined 1.77% to $61,922 after reaching all-time highs above $64,000 earlier this week ahead of cryptoexchange platform Coinbase Global's  (COIN) - Get Coinbase Global Inc Report initial public offering. 

Coinbase, meanwhile, finished up 5.96% to $342. The funds of star manager Cathie Wood have purchased about $352 million of shares in Coinbase over two days.