5 Top Stocks At The Forefront Of S&P 500 ETF Rally This Year

Image: Bigstock

The S&P 500 has been hitting a series of record highs on expectation of stronger economic recovery and bouts of solid economic data. Notably, the benchmark logged in the third consecutive week of gains for the first time in nearly six months, adding 2.7% last week. With this, it topped the new milestone of 4,000 for the first time on the first day of April and has the potential to march higher at least in the near term.

The solid run is likely to continue on hopes of solid economic recovery backed by continued progress in more COVID-19 vaccines, rapid vaccinations, reopening of the economy and a slew of new stimulus measures. The Fed’s continued accommodative stance and better-than-expected Q1 earnings should fuel continued strength.

Further, the International Monetary Fund (IMF) upgraded the U.S. economic growth forecast from 5.1% to 6.4% for this year, suggesting the strongest growth in decades. It projects that the United States is likely to become the engine of global economic growth this year, leading to the return of a strong risk appetite.

If these weren’t enough, the Federal Reserve Chair Jerome Powell bolstered confidence by saying that “the U.S. economy is at a turning point thanks to government support and a speedy campaign to inoculate Americans against COVID-19.” Powell added, “We feel like we’re at a place where the economy’s about to start growing much more quickly and job creation coming in much more quickly.”

Notably, the S&P 500 rebounded about 84% from its bottom reached in March last year, representing the best start to the new bull market on record, per LPL data.

Against such a backdrop, the proxy version of the S&P 500 Index, SPDR S&P 500 ETF Trust (SPY - Free Report), is also hitting record highs lately and gained 2.7% last week. Let’s take a closer look at the fundamentals of SPY and its best stocks:

Inside the SPY

1 2 3
View single page >> |

Disclosure: Zacks.com contains statements and statistics that have been obtained from sources believed to be reliable but are not guaranteed as to accuracy or completeness. References to any ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.