The S&P 500s slight climb Wednesday was good enough to set another record close, as the market counties its hot start to the second quarter. Both the benchmark index and the Dow have jumped to records in April, while the tech-heavy Nasdaq has fought its way back to within 3% of its mid-February highs.
Wall Street and investors continue to monitor inflation expectations and rising Treasury yields. But the 10-year U.S. Treasury remains low by historical measures. Along with prolonged TINA investing and a wave of new retail investors, there are plenty of reasons for the bullish sentiment.
The vaccine rollout, which is gaining steam in the U.S., should help some of the hardest-hit areas of the economy bounce back. Meanwhile, the possibility of 6% or higher U.S. GDP expansionthe best in over 30 yearshas seen cyclical areas from energy to finance bounce back. All of these fundamentals are boosted by easy money policies and the injection of trillions of dollars into the economy.
We are already seeing the comeback show up in the earnings picture that continues to gain momentum. And JPMorgans JPM CEO recently wrote in his annual letter to shareholders that the U.S. economic boom could last until 2023 (also read: Breaking Down the Positive Earnings Picture).
Now lets jump into three stocks that investors might want to buy now amid the bullish start to the second quarter