S&P 500 hits record high as traders sidestep hotter-than-expected-inflation reading

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  • US stocks advanced Thursday, pushing the S&P 500 to a record high.
  • Investors pushed past a hotter-than-expected May inflation print of 5%.
  • Stocks also found support as fewer Americans filed for jobless claims last week.
  • See more stories on Insider’s business page.

The S&P 500 climbed to a record high Thursday in a winning session for US stocks as investors appeared to embrace the Federal Reserve’s signals that hot inflation readings will be temporary and that it will stick with economic support measures.

The broad-market index soared to a record high just under 4,240 and the Nasdaq Composite surpassed 14,000 for the first time since early May. The Dow Jones Industrial Average gained ground after a string of three consecutive losses.

Stock indexes had been mixed early Thursday after the Labor Department said consumer prices in May rose 0.6%, a higher rate than expectations of 0.5%. Headline inflation jumped to 5% year over year, outstripping expectations of 4.6% from an Econoday survey of economists.

Separately, government data showed claims by Americans seeking unemployment benefits reached their lowest since the start of the coronavirus outbreak. New claims last week clocked in at 376,000.

Here’s where US indexes stood at 4 p.m. on Thursday:

Federal Reserve officials have signaled to market participants that they see inflationary pressures as transitory and that the central bank is unlikely to raise ultra-low interest rates before 2023.

“It is perhaps testament to how effective the Fed’s adjustment in communication has been recently since today’s [inflation] reading would likely have caused a very different reaction if it had come before the gentle shift in tone that has reassured investors about the responsiveness of Fed policy,” said Chris Beauchamp, chief market analyst at IG, in a note.

Around the markets, GameStop lost nearly 30% during the session after the video game retailer said it may sell up to 5 million shares and that the Securities and Exchange Commission has requested information as part of its investigation into the trading of its shares.

Clean Energy Fuels stock sank after regulatory filings revealed the company’s largest shareholder, TotalEnergies SE, cut its stake by more than 10 million shares.

Gold rose 0.4% to $1,895.38 per ounce. Long-dated US Treasury yields turned lower, with the 10-year yield down at 1.465% to its lowest since early March.

Oil prices rose, with West Texas Intermediate crude up by 0.5% at $70.28 per barrel. Brent crude, oil’s international benchmark, was up 0.3%, at $72.42 per barrel.

Bitcoin climbed 4% to $38,000 before paring gains to trade around $36,665.80.

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US stocks trade mixed as economic data signals continued recovery

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Traders work during the closing bell at the New York Stock Exchange (NYSE) on March 18, 2020 at Wall Street in New York City


US stocks traded in a narrow range on Tuesday, with the Dow Jones leading the market higher. The S&P 500 and Nasdaq 100 both finished Tuesday’s trading session within 10 basis points of Friday’s closing prices.

ISM Manufacturing data for the month of May was 61.2, slightly above April’s reading of 60.7, and above analyst expectations of 60.9.

Even with Tuesday’s narrow trading range, the S&P 500 and Dow Jones are within striking distance of record highs, as both indexes are less than 1% away from the potential milestone.

Here’s where US indexes stood shortly after the 4:00 p.m. ET close on Tuesday:

Oil surged on Tuesday, hitting highs not seen since 2018 after OPEC+ members forecasted growing demand amid a global economic recovery. The oil group is expected to confirm its supply policies in an upcoming meeting. That surge sent oil stocks higher, with the sector up as much as 3% in Tuesday trades.

Electric truck startup Rivian Automotive is said to be seeking a $70 billion valuation when it goes public later this year, according to a report from Bloomberg. The company was last valued at $27.6 billion in January.

Reddit meme stocks continued to soar on Tuesday, with movie-theater chain AMC Entertainment up as much as 20%. The company raised $230.5 million from the sale of stock to a private investment firm. Blackberry also surged as much as 10% in Tuesday trades.

Shares of Nio were higher in Tuesday trades following an upgrade from Citi, which said the stock could jump 50% on demand for electric vehicles in China.

Oil prices were higher. West Texas Intermediate crude rose 2.4%, to $67.93 per barrel. Brent crude, oil’s international benchmark, jumped 1.7%, to $70.50 per barrel.

Gold fell 0.1%, to $1,902 per ounce.

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Stocks recovered too quickly from the pandemic and could face a correction in the next year, a survey from the CFA Institute says

  • 45% of survey respondents told the CFA Institute that global stocks have bounced back too fast after the COVID-19 pandemic.
  • Equity markets are likely to hit a correction in one to three years as central banks rollback stimulus efforts.
  • The MSCI ACWI Index of large- to mid-cap stocks worldwide has gained about 25% so far in 2021.
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Stocks have been resilient after last year’s plunge into a bear market because of the COVID-19 pandemic but the recovery has moved too fast in the eyes of many investment professionals who say equities could face a correction in the next 12 months.

45% of respondents in a CFA Institute survey agreed that equities in their respective markets have “recovered too quickly.” The institute Tuesday released the results of its survey, which tallied responses from 6,040 members worldwide.

The results indicate that financial analysts believe there is a disconnect between economic growth fundamentals and capital markets caused in part by monetary stimulus, the institute said.

Central banks worldwide cut interest rates to ultra-low levels and increased asset purchases, among other actions, to foster economic recovery from the coronavirus crisis that forced a widespread shutdown of businesses and threw millions of people out of work. Those moves along with vaccinations of people worldwide from the respiratory disease have encouraged investors to embrace so-called risk assets including stocks.

In the US, the S&P 500 has gained nearly 12% since the start of 2021. That gain follows its 16.3% rise in 2020 after sliding into a bear market in March 2020 because of worries about the world’s largest economy falling into recession. The tech-concentrated Nasdaq Composite has also advanced this year, picking up 7%, although many large-cap tech stocks have dropped in favor of small-cap stocks of companies who are closely exposed to economic recovery. The Nasdaq soared in 2020 by 43.6%.

Meanwhile, the MSCI ACWI Index, representing large- and mid-cap stocks in 23 developed and 27 emerging markets, has picked up about 25% this year following its 16.3% rise in 2020. The MSCI ACWI ETF has bulked up by 11% during 2021.

But stocks are likely to run into a correction within one to three years as central banks begin to rollback stimulus as their respective economies mend from the pandemic, the survey respondents told the CFA.

“To me, it also indicates to authorities that monetary stimulus is not a simple or linear lever to pull given the complexity of the economic and financial ecosystem; there will be unintended consequences to consider in the future,” Paul Andrews, managing director of research, advocacy and standards at the CFA Institute, said in a statement.

Minutes from the Federal Reserve policy meeting in April indicated were moving closer to beginning discussions about potentially tapering economic support. The Fed has held its benchmark interest rate near zero and has bought at least $120 billion in assets each month to aid the economy through the pandemic.

The CFA Institute said 150,024 individuals received a survey invitation and the total response rate was 4%. The margin of error was plus or minus 1.2%.

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Dow climbs 280 points amid renewed pandemic-recovery optimism

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Traders work on the floor of the New York Stock Exchange shortly after the opening bell in New York, U.S., March 17, 2020.


US stocks started June higher, with the Dow Jones surging nearly 300 points ahead of economic data that is expected to show a continued economic recovery from the pandemic.

ISM Manufacturing data for the month of May is expected to come in slightly above April’s reading of 60.7 at 61, according to analyst estimates.

The move higher in stocks will put the S&P 500 and Dow Jones within striking distance of record highs, as both indexes are less than 1% away from the potential milestone.

Here’s where US indexes stood shortly after the 9:30 a.m. ET open on Tuesday:

Oil surged on Tuesday, hitting highs not seen since 2018 after OPEC+ members forecasted growing demand amid a global economic recovery. The oil group is expected to confirm its supply policies in an upcoming meeting.

Electric truck startup Rivian Automotive is said to be seeking a $70 billion valuation when it goes public later this year, according to a report from Bloomberg. The company was last valued at $27.6 billion in January.

Reddit meme stocks continued to soar on Tuesday, with movie-theater chain AMC Entertainment up as much as 20%. The company raised $230.5 million from the sale of stock to a private investment firm. Blackberry also surged as much as 10% in Tuesday trades.

Shares of Nio were higher in Tuesday trades following an upgrade from Citi, which said the stock could jump 50% on demand for electric vehicles in China.

Oil prices were higher. West Texas Intermediate crude rose 3%, to $68.30 per barrel. Brent crude, oil’s international benchmark, jumped 2.1%, to $70.78 per barrel.

Gold jumped 0.2%, to $1,910.60 per ounce.

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Tech stocks lead US markets lower as inflation fears persist

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US stocks were lower on Monday, dragged down by technology stocks as investors continued to weigh rising inflation fears, which rattled markets last week.

An uptick in COVID-19 cases outside of the US also hurt risk assets, as Asian countries like Taiwan and Singapore saw a tick higher in cases..

Fueling the surge in inflation expectations has been the actual surge in commodity prices, such as lumber, oil, and copper in recent weeks. But lumber prices have taken a break from jumping higher, with the essential building block down for six straight sessions in a row.

The highest number of S&P 500 companies citing “inflation” on their first-quarter earnings calls has surged to the highest level in over 10 years, according to FactSet.

Here’s where US indexes stood at the 4 p.m. ET market close on Monday:

Read more: Buy these 25 stocks that have the rare combo of highly reliable profits and cheap valuations, UBS says

It was also merger Monday on Wall Street, as AT&T agreed to merge its media business with Discovery in a deal worth $43 billion. AT&T will divest its TimeWarner unit, which it acquired in 2018 for $85 billion. AT&T surged as much as 3%, and Discovery as much as 20% in early Monday trades.

Bank of America likes the deal, and said in a Monday note that shares of AT&T could surge 50% from current levels as the newly formed media company unlocks value for shareholders.

Bitcoin retraced part of a deep weekend sell-off that was sparked by tweets from Tesla CEO Elon Musk. Bitcoin hit support near $42,000, before jumping to the $45,000 level on Monday. The entire cryptocurrency market has lost 23% in value in the past five days, according to data from CoinMarketCap.

Shares of GameStop jumped by as much as 8% in Monday trades after the company cryptically acknowledged its stock’s surge earlier this year in a tweet.

Oil prices were higher. West Texas Intermediate crude rose as much as 1.6%, to $66.43 per barrel. Brent crude, oil’s international benchmark, climbed 1.3%, to $69.62 per barrel, at intraday highs.

Gold increased as much as 1.4%, to $1,868.49 per ounce.

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US stocks decline as investors weigh inflation fears and spiking virus cases globally

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  • US stocks fell on Monday as investors weighed rising inflation fears and a jump in global COVID-19 cases.
  • It was also merger Monday on Wall Street as AT&T agreed to merge its media business with Discovery.
  • Cryptocurrencies were mostly higher on Monday as they recovered from a weekend sell-off.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

US stocks were lower on Monday as investors continued to weigh rising inflation fears and an uptick in COVID-19 cases was realized in Asian countries like Taiwan and Singapore.

Fueling the surge in inflation expectations has been the actual surge in commodity prices, such as lumber, oil, and copper in recent weeks.

The highest number of S&P 500 companies citing “inflation” on their first-quarter earnings calls has surged to the highest level in over 10 years, according to FactSet.

Here’s where US indexes stood at the 9:30 a.m. ET open on Monday:

Read more: Buy these 25 stocks that have the rare combo of highly reliable profits and cheap valuations, UBS says

It was also merger Monday on Wall Street, as AT&T agreed to merge its media business with Discovery in a deal worth $43 billion. AT&T will divest its TimeWarner unit, which it acquired in 2018 for $85 billion. AT&T surged as much as 3%, and Discovery as much as 20% in early Monday trades.

Bitcoin retraced part of a deep weekend sell-off that was sparked by tweets from Tesla CEO Elon Musk. The cryptocurrency hit support near $42,000, before jumping to the $45,000 level on Monday.

Oil prices were higher. West Texas Intermediate crude rose as much as 0.6%, to $65.74 per barrel. Brent crude, oil’s international benchmark, climbed 0.5%, to $69.07 per barrel, at intraday highs.

Gold fell increased as much as 0.7%, to $1,855.47 per ounce.

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US stocks rally as investors weigh stalling retail sales and inflation guidance

Traders work on the floor of the New York Stock Exchange (NYSE)
Traders work on the floor of the New York Stock Exchange.

  • Stocks rose Friday even as April retail sales stalled from last month’s jump
  • Fed officials this week have been assuring investors that monetary policy will remain support for economic recovery.
  • Stocks were on course to rise for a second straight session.
  • See more stories on Insider’s business page.

US stocks rose Friday, remaining on higher ground following flat monthly retail sales as investors appeared to lock into assurances by Federal Reserve officials that they will stick with monetary policies that support economic recovery.

All three of Wall Street’s benchmark indexes were on track to build on Thursday’s gains that snapped a three-session losing streak. Advances for stocks Friday came even after the Commerce Department said retail sales in April were virtually unchanged from the previous month. The print missed the estimated 1% increase in sales from economists surveyed by Bloomberg.

Here’s where US indexes stood at 9:30 a.m. on Friday:

Retail sales boomed in March in part as Americans spent stimulus money sent to them by the government in an effort to help the economy continue improving after last year’s COVID-induced recession.

The miss in retail sales appeared to be offset by comments made Friday by Cleveland Fed Bank President Loretta Mester who said in Bloomberg Television on Friday that monetary policy is in a “good place” as officials still work on improving employment levels.

Her view on leaving policy where is it for now followed comments this week by Federal Reserve Governor Christopher Waller, Fed Governor Lael Brainard and Fed Vice Chairman Richard Clarida who said the central bank will look past likely transitory inflation pressures and stick with near-zero interest rates to aid the world’s largest economy.

Around the markets, Coinbase shares rose following the crypto exchange’s first-quarter results, and as the company said it will soon add dogecoin to its roster of digital currencies to trade.

Gold rose to $1,835 per ounce. Long-dated US treasury yields fell, with the 10-year yield at 1.632%.

Oil prices rose. West Texas Intermediate crude picked up 0.8% to $64.31 per barrel. Brent crude, oil’s international benchmark, climbed 1.3% to $67.89 per barrel.

Bitcoin rose 1.3% to $50, 383.

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Dow plummets 472 points on inflation fears as tech stocks whipsaw

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  • Inflation fears drove a choppy trading session in stocks on Tuesday as the Dow Jones plummeted more nearly 500 points.
  • The tech-heavy Nasdaq 100 started the day down by more than 2% before it briefly reversed all losses and turned green.
  • Fueling a surge in inflation expectations has been the actual surge in commodities like lumber, oil, and copper.
  • Sign up here for our daily newsletter, 10 Things Before the Opening Bell.

Stocks were volatile on Tuesday as fears of rising inflation persisted among investors. The Nasdaq initially fell more than 2% before briefly turning positive, while the Dow Jones fell more than 500 points before paring some losses.

Fueling the surge in inflation expectations has been the actual surge in commodity prices, such as lumber, oil, and copper.

This week’s stock market decline hit high-flying tech stocks the most, with shares of Tesla down as much as 13% since the start of the week. Cathie Wood’s ARK Invest flagship ETF was also being sold heavily by investors, as it fell 10% since Monday.

Here’s where US indexes stood at the 4:00 p.m. ET close on Tuesday:

Virgin Galactic, the pre-revenue space tourism company that seeks to launch paying customers into space, fell as much as 21% after its first-quarter earnings report revealed an uncertain flight schedule as it deals with maintenance issues for its spaceship.

Palantir initially fell as much as 9% after its first-quarter earnings report, but went onto reverse those losses and rise by as much as 9%. The company also said it will accept bitcoin as a form of payment and was weighing adding it to its balance sheet.

The price of dogecoin briefly surged as much as 20% after Tesla CEO Elon Musk ran a poll on Twitter to see if the electric vehicle manufacturer should accept the meme-inspired cryptocurrency as a form of payment. Tesla currently accepts bitcoin as payment for its products.

Roblox jumped as much as 18% after it reported mixed earnings results in its first report as a public company. The stock erased all of its losses for the month of May and reached its highest levels since late April.

Novavax extended its two-day decline to as much as 31% after it delayed seeking emergency approval for its COVID-19 vaccine.

Oil prices were higher. West Texas Intermediate crude jumped 0.4%, to $65.35 per barrel. Brent crude, oil’s international benchmark, dropped by 0.4%, to $68.60 per barrel.

Gold was flat on Tuesday at $1,837.30 per ounce.

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Nasdaq tumbles 2% as inflation fears continue tech-fueled market sell-off

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Traders work on the floor of the New York Stock Exchange shortly before the closing bell as the market takes a significant dip in New York, U.S., February 25, 2020.


US tech stocks continued their decline on Tuesday as fears of rising inflation persisted among investors. The Nasdaq fell more than 2% on Tuesday, adding on to its Monday decline of 2.55%.

Fueling the surge in inflation expectations has been the actual surge in commodity prices, such as lumber, oil, and copper.

This week’s stock market decline hit high-flying tech stocks the most, with shares of Tesla down as much as 13% since the start of the week. Cathie Wood’s ARK Invest flagship ETF was also being sold heavily by investors, as it fell 10% since Monday.

Here’s where US indexes stood at the 9:30 a.m. ET open on Tuesday:

Virgin Galactic, the pre-revenue space tourism company that seeks to launch paying customers into space, fell as much as 21% after its first-quarter earnings report revealed an uncertain flight schedule as it deals with maintenance issues for its spaceship.

Palantir fell as much as 9% after its first-quarter earnings report failed to impress investors. And decline auto sales in China for Tesla led to a sharp decline in the stock on Tuesday.

The price of dogecoin briefly surged as much as 20% after Tesla CEO Elon Musk ran a poll on Twitter to see if the electric vehicle manufacturer should accept the meme-inspired cryptocurrency as a form of payment. Tesla currently accepts bitcoin as payment for its products.

Oil prices were lower. West Texas Intermediate crude fell 1.4%, to $63.99 per barrel. Brent crude, oil’s international benchmark, dropped by 1.3%, to $67.42 per barrel.

Gold fell 0.7%, to $1,825.90 per ounce.

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Dow, S&P 500 close at record highs after dismal jobs report gives Fed more breathing room

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  • The Dow Jones and S&P 500 closed at record highs on Friday after a weak April jobs report gave the Federal Reserve breathing room to continue with its easy monetary policies.
  • April saw an addition of 266,000 jobs, well below the estimates forecast of 1 million.
  • The April jobs report represented the worst miss since 1998.

The Dow Jones and S&P 500 closed at record highs on Friday after a weak April jobs report led to investors bidding up popular stay-at-home stocks that have performed well during the pandemic. The Nasdaq led the markets higher, but failed to reach new records.

April saw an addition of 266,000 jobs, well below the estimated forecast of 1 million. Unemployment rose to 6.1% from 6.0%. Economists had expected the rate to fall to 5.8%. The jobs report represented the worst miss since 1998.

The report likely gave the Federal Reserve more breathing room in continuing with its easy monetary policies, with regards to keeping interest rates low and its $120 billion monthly bond purchases.

While the Nasdaq 100 jumped following the release of the April jobs report, the Dow Jones moved lower as cyclical stocks tied to a reopened economy were out of favor.

Here’s where US indexes stood at the 4:00 p.m. ET close on Friday:

Square jumped 6% following its first-quarter earnings report, which surpassed analyst estimates. The company saw its bitcoin revenue jump 1,000% to $3.5 billion, and disclosed that it’s the third-largest corporate holder of the cryptocurrency.

The surge in bitcoin interest has led to banks opening up new business divisions to gain exposure. A report said Citi is planning to launch its own crypto trading services, and Goldman is also launching a cryptocurrency trading desk.

A bitcoin ETF launched three weeks ago has already attracted $832 million in assets under management, as the crypto craze continues.

Since the announcement of divorce between Bill and Melinda Gates, more than $5 billion worth of stocks have been transferred to Melinda from Bill Gates’ Cascade Investment holding company.

Tilray jumped 10% on a double upgrade from Jefferies, which said its merger with Aphria was a “perfect” match.

Oil prices rose modestly. West Texas Intermediate crude was up 0.05%, to $64.73 per barrel. Brent crude, oil’s international benchmark, increased by 0.01%, to $68.10 per barrel.

Gold jumped to its highest price since February, rising as much as 1.5%, to $1,842.59 per ounce

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