U.S. equities gained amid progress in distributing vaccines and as investors weighed the outlook for economic growth and inflation. Oil tumbled after a rally spurred by the blockage of the Suez Canal.

Banks and transportation companies led gains on the S&P 500 Index, and Boeing Co.’s plan to resume delivery of its 787 Dreamliners this week lifted the planemaker. An index of small-cap shares gained more than 2 per cent as President Joe Biden announced a new goal of administering 200 million Covid-19 vaccine doses in his first 100 days in office. Nike Inc. fell on concern it risked a boycott in China.

U.S. 10-year yields held steady after an auction of seven-year notes. Poor demand at last month’s sale helped trigger a global selloff in government debt and interest-rate sensitive stocks.

U.S. equities are churning just below record highs as investors assess the latest progress and setbacks in the fight against COVID-19 amid concerns that a surge in economic growth could fuel inflation. Data Thursday showed a bigger-than-forecast drop in weekly jobless claims.

“The markets are stuck in a lull where they are still taking some direction from the move in interest rates,” said Megan Horneman, director of portfolio strategy at Verdence Capital Advisors. “At this point we’re trying to get some more news globally that will be the next catalyst.”

In Europe, stocks edged lower, with concern over lockdown extensions and vaccine hiccups keeping cyclical shares on the back foot. The Polish zloty slumped to its weakest level since 2009 on growing concern that a worsening pandemic will delay this year’s economic recovery and put a strain on the budget.

West Texas Intermediate crude fell below US$60 a barrel, after adding almost 6 per cent Wednesday. Tugs and diggers are trying to dislodge the ship stuck for a third day in the Suez Canal, a critical waterway for trade.

Elsewhere, bitcoin fell as much as 6.7 per cent, reaching the lowest intraday price since March 15.

These are some key events to watch this week:

• The U.S. Treasury auctions seven-year debt.
• U.S. personal income and spending data on Friday.

These are some of the main moves in financial markets:

Stocks

• The S&P 500 Index rose 0.5 per cent as of 4:00 p.m. New York time.
• The Stoxx Europe 600 Index fell 0.1 per cent.
• The MSCI Asia Pacific Index fell 0.1 per cent.
• The MSCI Emerging Market Index declined 0.8 per cent.

Currencies

• The Bloomberg Dollar Spot Index rose 0.1 per cent.
• The euro slipped 0.4 per cent to US$1.1774.
• The British pound gained 0.4 per cent to US$1.374.
• The Japanese yen weakened 0.4 per cent to 109.12 per dollar.

Bonds

• The yield on 10-year Treasuries rose one basis point to 1.62 per cent.
• Germany’s 10-year yield fell three basis points to -0.39 per cent.
• Britain’s 10-year yield sank three basis points to 0.73 per cent.

Commodities

• West Texas Intermediate crude fell 4.5 per cent to US$58.39 a barrel.
• Gold fell 0.5 per cent to US$1,729.76 an ounce.