{"id":111689,"date":"2021-04-09T21:11:13","date_gmt":"2021-04-09T21:11:13","guid":{"rendered":"https:\/\/fin2me.com\/?p=111689"},"modified":"2021-04-09T21:11:13","modified_gmt":"2021-04-09T21:11:13","slug":"sp-500-dow-scale-new-heights-treasury-yields-rise-on-strong-inflation-data","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/sp-500-dow-scale-new-heights-treasury-yields-rise-on-strong-inflation-data\/","title":{"rendered":"S&P 500, Dow scale new heights, Treasury yields rise on strong inflation data"},"content":{"rendered":"
NEW YORK (Reuters) – The S&P 500 and the Dow notched record closing highs on Friday after solid U.S. inflation data and an uptick in Treasury yields suggested the economic recovery from the pandemic-related recession was gaining momentum.<\/p> \u201c(It was) a fairly quiet Friday with low volume, a welcome change from 12 months ago,\u201d said David Carter, chief investment officer at Lenox Wealth Advisors in New York.<\/p>\n \u201cToday was all about inflation,\u201d Carter added. \u201cDespite today\u2019s higher PPI number, equity markets are starting to begrudgingly believe the Fed is in no rush to raise interest rates.\u201d<\/p>\n All three major U.S. stock indexes posted weekly gains as upbeat economic data boosted risk appetite ahead of first-quarter earnings.<\/p>\n Transports, seen as a proxy for economic health, advanced for their 10th week in a row.<\/p>\n \u201cCyclical parts of the market like transports are being driven higher due to strong vaccination rates in the U.S., which suggests the economic reopening may accelerate,\u201d Carter said.<\/p>\n A Labor Department report showed producer prices rose last month at twice the speed of February\u2019s growth, reviving some inflation worries.<\/p>\n U.S. Federal Reserve Chairman Jerome Powell offered assurances on Thursday that the central bank is far more concerned about the recent uptick in COVID-19 infections than inflationary pressures.<\/p>\n \u201cPowell is not overly concerned about long-term inflation,\u201d said Ryan Detrick, senior market strategist at LPL Financial in Charlotte, North Carolina. \u201cThe Fed has stressed from the very beginning these increases will be transitory.\u201d<\/p>\n The Dow Jones Industrial Average rose 297.03 points, or 0.89%, to 33,800.6, the S&P 500 gained 31.63 points, or 0.77%, to 4,128.8 and the Nasdaq Composite added 70.88 points, or 0.51%, to 13,900.19.<\/p>\n European stocks ended nominally higher, but marked their longest winning streak since November 2019 on rising hopes of a rapid economic rebound.<\/p>\n The pan-European STOXX 600 index rose 0.08% and MSCI\u2019s gauge of stocks across the globe gained 0.32%.<\/p>\n Emerging market stocks lost 0.97%. MSCI\u2019s broadest index of Asia-Pacific shares outside Japan closed 0.81% lower, while Japan\u2019s Nikkei rose 0.20%.<\/p>\n U.S. Treasury yields rose in the wake of the PPI report, which provided further evidence that the world\u2019s largest economy was on a stable road to recovery from the pandemic.<\/p>\n Benchmark 10-year notes last fell 7\/32 in price to yield 1.655%, from 1.632% late on Thursday.<\/p>\n The 30-year bond last fell 3\/32 in price to yield 2.327%, from 2.322% late on Thursday.<\/p>\n The dollar inched higher against a basket of world currencies as inflation data lifted bond yields, but the greenback had its softest week of the year due to better-than-expected economic data and the dovish Fed.<\/p>\n The dollar index rose 0.11%, with the euro down 0.07% to $1.1904.<\/p>\n Graphic: Dollar set for worst week of the year<\/p>\n The Japanese yen weakened 0.35% versus the greenback at 109.65 per dollar, while Sterling was last trading at $1.3709, down 0.17% on the day.<\/p>\n Crude oil prices dropped on rising supply amid a mixed picture on demand recovery from the COVID-19 slump.<\/p>\n U.S. crude dipped 0.47% to settle at $59.32 per barrel, while Brent crude settled at $62.95 per barrel, falling 0.4% on the day.<\/p>\n Gold withdrew from Thursday\u2019s one-month peak, weighed down by a rebounding dollar and rising Treasury yields. Still, the safe-haven metal appears headed for its first weekly gain in three.<\/p>\n Spot gold dropped 0.8% to $1,742.64 an ounce.<\/p>\n