The Dow closed 0.7%, or 238 points, higher, finishing above 35,000 for the first time ever. The S&P and the Nasdaq both climbed 1%.
Investors, fearful that rising Covid-19 cases and the more infectious Delta variant would stifle the economic recovery, retreated from stocks and fled to the relative safety of government bonds.
“Although the variant has punctured the ‘vaccine euphoria’ that was prevalent in the market several months ago, investors seem convinced that economies will continue to open up gradually despite the new variant,” said Marshall Gittler, head of investment research at BDSwiss Group, in a note to clients.
One thing is for sure: the Delta variant is bringing more uncertainty to the market.
But it didn’t look as good on the services front: The advance services PMI underperformed expectations and dropped to a five-month low.