NEW YORK: U.S. stocks closed higher on Friday as more investors piled in on the presidential election rally while the euro continued to weaken after the European Central Bank’s decision a day earlier to extend economic stimulus.
U.S. Treasury yields climbed with benchmark yields marking a fifth consecutive week of increases on stronger-than-forecast data on China inflation and U.S. consumer sentiment ahead of $56 billion of government debt auctions.
European shares had their best week since January, after the ECB decision to cut monthly bond purchases to 60 billion euros ($63.7 billion) from 80 billion and extend buying to December, three months longer than analyst forecasts.
The S&P 500 stock index had its best week in four and its biggest gainers on Friday were the consumer staples and healthcare sectors, which have been two of the weakest in the rally following Donald Trump’s election as U.S. President.
“Today we’re seeing money going into some of the lesser loved sectors since the election, which is telling me the rally is broadening which is a very positive sign,” Randy Frederick, vice president of trading and derivatives for Charles Schwab in Austin, Texas.
While some investment managers may be taking profits others who did not trust the post-election rally are now hoping to show year-end gains by picking up sectors that look less expensive.
