The S&P 500 is starting off April with a bang, at its high for the year and now only about 2% from the old historic closing high of 2,930 on September 20th of last year. April is the best month for the Dow Industrials (up 13 straight years), and the third best month for the S&P 500 (after December and November).
The markets are holding their gains, and with good reason: The China manufacturing data was much better than expected and plays perfectly with the bull narrative that China’s economic weakness will bottom this year. It was risk on right from the outset, with semiconductors, industirals, and energy leading and consumer staples and utilities lagging.
Better-than-expected ISM Manufacturing and construction spending numbers also lifted the markets mid-morning–notably bond yields spiked on that, and banks lifted at the same time.