S&P 500 notches another record high as recovery optimism overtakes inflation concerns
- The S&P 500 closed at a record high Friday as investor optimism around the recovery overshadows inflation concerns.
- The benchmark index on broke both its intraday and closing records the previous day as well.
- Lumber fell for the eighth straight day to trade at $1,059.20 per thousand board feet on Friday.
The S&P 500 notched another record high to end the week as investors remain optimistic the the economy is on the way up and inflationary pressures will be short lived.
"Inflation is being pushed higher on supply chain issues and pent-up consumer spending, all of which should start to ease around the end of summer," Ed Moya, senior market analyst at foreign exchange firm Oanda, said in a note.
For the week, the S&P 500 and the tech-heavy Nasdaq rose modestly, while the Dow Jones inched lower.
"The next few trading sessions will likely see modest positioning ahead of the FOMC, with investors fixating over how discussions over tapering have begun," Moya added.
While Thursday's data showed that US inflation surged more than expected in May, weekly jobless claims fell to another pandemic-era low.
Here's where US indexes stood at 4:00 p.m. ET close on Friday.
- S&P 500: 4,247.44, up 0.19%
- Dow Jones Industrial Average: 34,479.60, 0.04% (13.36 points)
- Nasdaq Composite: 14,069.42, up 0.35%
Meme stocks continued their volatile ride. Overnight, shares of Orphazyme, a small Danish biotechnology company, surged as much as 1,387% in US trading hours Thursday as chatter about the stock jumped on Reddit's Wall Street Bets.
AMC, meanwhile, climbed, bolstered by an upgrade of its credit rating at S&P Global Ratings, which said new fundraising by the company should help put the movie-theater chain on steadier financial footing.
Bill Ackman's eagerly anticipated SPAC deal to buy 10% of Universal Music Group is reportedly facing pushback, Bloomberg reported. A large shareholder of Vivendi, which owns the majority of UMG, is said to be against the sale.
Bitcoin traded mostly flat at $37,346. The world's most popular cryptocurrency climbed to a one-week high Thursday, hitting $38,000, shrugging off renewed calls for tighter regulation.
The Texas Department of Banking greenlighted state-chartered banks to offer custody for crypto assets. The notice affirms that banks may provide customers with virtual currency custody services as long as the bank has "adequate protocols in place to effectively manage the risks and comply with applicable law."
Gold slipped by 1.15% to $1,876.29 per ounce. The precious metal lost some ground as the US dollar rose.
Oil prices rose, recovering from earlier losses. West Texas Intermediate crude edged higher by 0.70% to $70.78 per barrel. Brent crude, oil's international benchmark, was up 0.10%, at $72.59 per barrel.
Lumber fell for the eighth straight day by 5.61% to trade at $1,059.20 per thousand board feet on Friday.