Stock market peak? ‘Easy money’ has been made but room for more gains, strategists say

Another week of booming U.S.

Investors, however, will need to be more selective, focusing on companies and sectors more likely to top rising earnings expectations, she said.

ended the week down 0.5%, while the S&P 500 was virtually flat and the Nasdaq Composite fell 0.4%.

The week ended with data that showed a 21.1% rise in personal income in March, fueled by fiscal stimulus checks, and accompanied by a 4.2% jump in personal spending.

And the strong economic readings are almost certain to continue in the week ahead, with the Institute for Supply Management set to release its manufacturing index for April on Monday and its April services sector gauge on Wednesday.

Travel and leisure stocks and some other consumer-oriented parts of the market “can still do extremely well,” she said.

Malik is also upbeat on consumer-oriented companies, while industrials are set to benefit from continued economic growth and infrastructure spending.

Malik is also bullish on small-cap stocks.

Over the past month, small-caps have underperformed thanks to the rising number of COVID-19 cases around the globe, especially in Asia, and questions over whether the economic reopening has been priced in, she said.

Investors overall seem unfazed by Biden’s call for personal income tax hikes on the wealthy and a rise in the corporate tax rate.

Before moving to New York, he reported for MarketWatch from Frankfurt, London and Washington, D.C.

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