U.S. stocks notched their biggest gains in a week Thursday, pushing the Nasdaq composite index to an all-time high.
The rally came a day after the Federal Reserve suggested that it wasn’t planning to raise interest rates right away. Ultra-low rates over the past six years have helped drive a bull market in stocks that has pushed the market to record levels.
The central bank said Wednesday that it needs to see more improvement in the economy and stronger signs of inflation before lifting rates, reassuring investors.
Covenant to join Russell 3000 index
Covenant Transportation Group Inc. said Thursday it expects to join the Russell 3000 stock index at the conclusion of the annual reconstitution of Russell indices next Friday. Membership in the Russell 3000 Index, which remains in place for one year and is based upon the market value of the biggest publicly traded companies, means automatic inclusion in either the large-cap Russell 1000 Index or small-cap Russell 2000 Index. The Chattanooga-based Covenant has a market value of more than $425 million, based upon the company’s closing stock price Thursday. Staff report
“The Fed’s likely to raise rates later this year, but maybe not as aggressively as some market participants worried,” said Michael Baele, managing director and senior portfolio manager at U.S. Bank Private Client Reserve.