The U.S. stock market rose on Friday, with the S&P 500 adding to its flurry of records for the week, as traders bet that higher inflation will only be temporary as the U.S. economy continues to recover from the COVID-19 pandemic.
The S&P 500 climbed +0.33% on the day to hit another closing record high of 4,280.70. The financial sector was the best-performing S&P 500 sector with a +1.3% gain. The DOW rose 237.02 points or +0.69% to 34,433.84, sitting less than 2% from its all-time record high. The NASDAQ erased earlier gains and closed -0.06% lower at 14,360.39 as bond yields rose, with the 10-year Treasury yield jumping 4 basis points to 1.52%.
The S&P 500 rallied +2.74% for the week, notching its biggest weekly gain since early February of this year. The DOW gained +3.44% this week for its best week since mid-March, and the NASDAQ advanced +2.35%.
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.
Key Levels To Watch Next Week:
- S&P 500 (CME:SP500): 4,164.40
- Dow (INDEX:DJI): 34,820.91
- NASDAQ (NASDAQ:COMP): 13,784.89
- U.S. Dollar (ICE:DX): 89.83
- Gold (NYMEX:GC.Q21): 1,773.60
- Crude Oil (NYMEX:CL.Q21): 72.85
- Bitcoin (BITCOIN:BITSTAMPUSD): 41,341.57
Every Success,
Jeremy Lutz
INO.com and MarketClub.com
