The major averages rebounded into the green with the S&P 500 adding to its new record, as Wall Street wrapped up the week on a high note. The S&P 500 climbed 8 points or 0.2% to a fresh closing high of 4,247, a second record close in a row. The Nasdaq Composite advanced 49 points or 0.4% to 14,069 with Apple, Microsoft and Netflix all registered gains. The Dow Jones Industrial Average gained 13 points to 34,480.
The market built on Thursday's gain as investors shrugged off a report showing inflation rising at its fastest pace since 2008. The Consumer Price Index jumped 5% in May from a year earlier, at a slightly higher pace than expected.
Perhaps giving a boost to stocks has been the reaction in the bond market to the hot inflation reports. The 10-year Treasury yield fell to a three-month low of 1.44% on Friday, after trading above 1.77% earlier in the year.
Tech companies tend to underperform in a rising-rate environment as higher rates lower the present value of expected cash flow for growth-oriented companies. The tech-heavy Nasdaq has been the relative loser in 2021 among the major averages as bond yields turned higher.
For the week, the major benchmarks are mixed. The Dow is off by 1%, but the S&P 500 is up 0.2%, on pace for its third straight positive week. The Nasdaq Composite is the outperformer this week with a 1.5% gain so far, poised to post its fourth winning week in a row.
Some of the meme stocks were rebounding after a rough day on Thursday. AMC shares were up 10% and GameStop gained 4%. Those two suffered double-digit percent losses on Thursday as momentum in the Reddit favorites faded.
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