U.S. Stocks Head for Third-Straight Weekly Gain: Markets Wrap

Rita Nazareth and Claire Ballentine

April 9, 2021

Stocks rose toward another record as investors shrugged off concern over inflation and focused on prospects for an economic rebound. Treasuries fell, while the dollar rose.

Retailers, tech and industrial shares drove the advance in the S&P 500, which was on pace for its third-straight weekly rally -- the longest run since October. Trading was sluggish again on Friday, with volume 28% below the average of the past 30 days. The Nasdaq Composite underperformed major benchmarks. Honeywell International Inc. led gains in the Dow Jones Industrial Average after an analyst upgrade.

Equities extended a surge from March 2020 lows to almost 85% as Federal Reserve officials reassured markets that policy will remain supportive. Fed Vice Chairman Richard Clarida said the central bank is looking for evidence on whether it’s reaching the goals on price stability and employment before adjusting rates. Still, data showing the rise in producer prices added fuel to the debate about the path of inflation in the coming months.

“It’s noisy data,” said Giorgio Caputo, senior fund manager at J O Hambro Capital Management. “It’s important to remember the positive elements of what is actually happening -- prices are going up because we’re getting demand back together.”

These are some of the main moves in markets:

Stocks
The S&P 500 rose 0.3% at 1:44 p.m. New York time.
The Stoxx Europe 600 Index gained 0.1%.
The MSCI Asia Pacific Index dipped 0.5%.

Currencies
The Bloomberg Dollar Spot Index rose 0.1%.
The euro declined 0.1% to $1.1907.
The Japanese yen weakened 0.3% to 109.60 per dollar.

Bonds
The yield on two-year Treasuries rose less than one basis point to 0.15%.
The yield on 10-year Treasuries climbed three basis points to 1.65%.
The yield on 30-year Treasuries rose one basis point to 2.32%.

Commodities
West Texas Intermediate crude declined 0.4% to $59.35 a barrel.
Gold fell 0.6% to $1,744.66 an ounce.