S&P 500 hovers near a record as benchmark set to wrap up a winning week

U.S. shares rose barely on Friday with the S&P 500 including to its new record, as Wall Street goals to wrap up the week on a excessive word.

The S&P 500 added 0.1% after closing at a record within the earlier session, the primary record since May 7. The Nasdaq Composite superior 0.2% with Apple, Amazon, Microsoft and Netflix all buying and selling within the inexperienced. The Dow Jones Industrial Average erased earlier beneficial properties and turned 40 factors decrease.

The market constructed on Thursday’s achieve as traders shrugged off a report exhibiting inflation rising at its fastest pace since 2008. The Consumer Price Index jumped 5% in May from a yr earlier, at a barely greater tempo than anticipated.

“While the May CPI report came in above estimates, the market was not too surprised and digested the data as transitory for now,” mentioned Craig Johnson, technical market strategist at Piper Sandler. “The Treasury market appeared to be in agreement with the temporary inflation outlook.”

Perhaps giving a enhance to shares has been the response within the bond market to the recent inflation experiences. The 10-year Treasury yield fell to a three-month low of 1.44% on Friday, after buying and selling above 1.77% earlier within the yr.

Tech corporations have a tendency to underperform in a rising-rate atmosphere as greater charges decrease the current worth of anticipated money movement for growth-oriented corporations. The tech-heavy Nasdaq has been the relative loser in 2021 among the many main averages as bond yields turned greater.

For the week, the most important benchmarks are combined. The Dow is off by 0.8%, however the S&P 500 is up 0.2%, on tempo for its third straight optimistic week. The Nasdaq Composite is the outperformer this week with a 1.6% achieve to date, poised to publish its fourth winning week in a row.

Some of the meme shares had been rebounding after a tough day on Thursday. AMC shares had been up 3% and GameStop gained 4%. Those two suffered double-digit percent losses on Thursday as momentum within the Reddit favorites pale.

“The ups and downs of meme stocks have generally had little impact on the overall direction of the stock market,” Peter Berezin, BCA Research’s chief world strategist, mentioned in a word. “Nevertheless, growing interest in meme stocks is positive for equities over a medium-term horizon… This is because the meme stock phenomenon is drawing funds into the stock market, boosting prices and liquidity in the process.”

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