BNN Bloomberg's mid-morning market update: April 9, 2021
Stocks climbed to another record as investors shrugged off concern over inflation and focused on prospects for an economic rebound. Treasuries fell, while the dollar advanced.
The S&P 500 closed above 4,100 and posted its third-straight weekly rally -- the longest run since October. Volume on U.S. exchanges hit a new low for 2021. The Nasdaq Composite underperformed. Honeywell International Inc. led gains in the Dow Jones Industrial Average on an analyst upgrade. Boeing Co. slid after grounding dozens of 737 Max jets to repair an electrical flaw that emerged in recently delivered models.
Equities extended a surge from their March 2020 lows to about 85 per cent as Federal Reserve officials reassured markets that policy will remain supportive. Vice Chairman Richard Clarida said the Fed 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.
“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:
- The S&P 500 climbed 0.8 per cent at 4 p.m. New York time.
- The Stoxx Europe 600 Index gained 0.1 per cent.
- The MSCI Asia Pacific Index decreased 0.5 per cent.
- The Bloomberg Dollar Spot Index gained 0.1 per cent.
- The euro fell 0.1 per cent to US$1.1904.
- The Japanese yen weakened 0.4 per cent to 109.65 per dollar.
- The yield on two-year Treasuries rose one basis point to 0.16 per cent.
- The yield on 10-year Treasuries rose four basis points to 1.66 per cent.
- The yield on 30-year Treasuries rose two basis points to 2.33 per cent.
- West Texas Intermediate crude fell 0.5 per cent to US$59.32 a barrel.
- Gold slid 0.7 per cent to US$1,742.83 an ounce.
--With assistance from Emily Barrett, Robert Brand and Vildana Hajric.