- Financials lead sector gains
- Didi takes a breather after four-day losing streak
- Indexes up: Dow 1.3%, S&P 500 1.1%, Nasdaq 0.9%
NEW YORK, July 9 (Reuters) - U.S. stocks rallied on Friday and the S&P 500 hit a record high as financials and other economically focused sectors rebounded after a selloff sparked by growth worries earlier in the week.
The indexes were also set to end higher on a week that also saw a sharp rally in U.S. Treasuries amid the fears that the recovery in the U.S. economy was losing steam with the Delta variant of the coronavirus spreading.
Investors are eager to hear from U.S. companies next week when the second-quarter earnings season begins. Big banks will be among the first to report.
Analysts expect earnings growth of 65.8% for companies in the S&P 500 index in the quarter, up from a previous forecast of 54% growth at the start of the period, according to Refinitiv IBES data.
"Earnings are likely to be good because earnings were so weak from a year ago at this time," said Rick Meckler, partner at Cherry Lane Investments in New Vernon, New Jersey.
The Dow Jones Industrial Average (.DJI) rose 454.61 points, or 1.32%, to 34,876.54, the S&P 500 (.SPX) gained 47.99 points, or 1.11%, to 4,368.81 and the Nasdaq Composite (.IXIC) added 136.00 points, or 0.93%, to 14,695.79.
Among individual stocks, Levi Strauss & Co (LEVI.N)added 1.3% as it forecast a strong full-year profit after beating quarterly earnings estimates on improving demand across its markets for jeans, tops, and jackets. read more
U.S.-listed shares of Chinese ride-hailing company Didi Global Inc (DIDI.N) rose 8.8% after four sessions of losses, as it was recently hit by an investigation from China's internet watchdog.
Advancing issues outnumbered declining ones on the NYSE by a 4.08-to-1 ratio; on Nasdaq, a 3.09-to-1 ratio favored advancers.
The S&P 500 posted 35 new 52-week highs and no new lows; the Nasdaq Composite recorded 53 new highs and 30 new lows.
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