Wall Street rallies on strong recovery hopes

A directionless week on Wall Street ended with broad gains in a late afternoon surge Friday as investors picked up stocks of companies that stand to benefit most from an economic recovery. Value stocks, which include energy and materials stocks, provided the biggest lift. But even tech stocks joined the rally.

And so, the S&P 500 gained 1.7% while the Dow added 1.4%. The Nasdaq was the laggard with a 1.2% rise. For the week, the Dow and S&P rose more than 1% but the tech-rich Nasdaq lost ground.

Value stocks have been outperforming technology and other growth stocks this year as economists predict an acceleration in economic expansion.

Carson Wealth CEO Ron Carson, a Barron’s Hall of Fame advisor, advises clients to boost their exposure to value stocks.

“I would start to shift, especially with rates moving up value stocks are really in a position to do better. They've done, you know, relatively speaking, when you compare to growth, they haven't done so hot over the last decade. I definitely would be. We're reducing our exposure to growth increasing our exposure to value.”

Bank stocks like Bank of America and U.S. Bancorp rose as the Fed said it would lift income-based restrictions on bank dividends and share buybacks for “most firms” in June.

L Brands jumped almost 4%. The owner of lingerie retailer Victoria’s Secret raised its profit forecast for the second time this month. It’s benefiting as consumers spend their stimulus checks at their stores. U.S. consumer spending dropped last month but economists expect it to bounce back, thanks to a new round of those stimulus checks and warmer weather.

Shares of Nio skidded nearly 5%. The Chinese maker of electric vehicles became the latest automaker to announce it’s halting production at a plant due to a shortage of semiconductor chips.