S&P 500 climbs to another record led by bank shares, notches its best week since February
U.S. stocks rose on Friday with the S&P 500 building on its rally to records, as investors bet that higher inflation will be temporary as the economy continues to recover from the pandemic.
The broad equity benchmark climbed 0.3% to hit another closing record high of 4,280.70. Financials were the best-performing S&P 500 sector with a 1.3% gain. The Dow Jones Industrial Average rose 237.02 points, or 0.7%, to 34,433.84, sitting less than 2% from its record. The Nasdaq Composite erased earlier gains and closed 0.1% lower at 14,360.39 amid a rise in bond yields. The 10-year Treasury yield jumped 4 basis points to 1.52%.
The S&P 500 rallied 2.7% for the week, notching its biggest weekly gain since early February. The Dow gained 3.4% this week for its best week since mid-March, while the Nasdaq advanced 2.4%.
Friday’s rally came after a key inflation indicator that the Federal Reserve uses to set policy rose 3.4% in May, the fastest increase since the early 1990s, the Commerce Department reported Friday. The reading matched the expectation from economists polled by Dow Jones. The core index rose 0.5% for the month, which actually was below the 0.6% estimate.
The core personal consumption expenditures price index increase reflects the rapid pace of economic expansion and resulting price pressures, and amplified how far the nation has come since the pandemic-induced shutdown of 2020.
Stock futures rise as S&P 500 looks to add to record
Futures contracts tied to the major U.S. stock indexes rose Sunday evening after the S&P 500 notched its best week since February, as well as a new record, on Friday.
Futures tied to the S&P 500 rose 0.15% and those linked to the Dow Jones Industrial Average advanced 50 points. Nasdaq 100 futures gained 0.15%.
Reference: CNBC
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