S&P 500 erases loss for the week

Business | 11 Jun 2021 7:22 am

Health care and technology companies helped drive stocks higher Thursday, bringing the S&P 500 index to a record high and out of the red for the week.

The benchmark index climbed by 0.5 percent, and is on track for its third straight weekly gain. Bond yields initially rose, then mostly fell after a much-anticipated report showing a big jump in inflation last month.

The Labor Department said consumer prices jumped 5 percent in May, the biggest year-over-year increase since 2008. The figure was higher than the 4.6 percent rise that economists had expected.

While investors have been concerned about inflation for weeks, the May report seemed to reinforce the growing consensus that any increase in inflation will be temporary. A significant portion of the rise in consumer prices was tied to the sale of used cars, for example, which is largely attributed to the fact that many rental car companies are buying vehicles to beef up their fleets as people return to traveling.

The S&P 500 gained by 19.63 points, at 4,239.18, just beating the index’s previous all-time high set on May 7th. The Dow Jones Industrial Average edged up 19.10 points, or 0.1 percent, at 34,466.24. The Nasdaq Composite rose 108.58 points, or 0.8 percent, at 14,020.33.

Smaller company stocks lagged the broader market. The Russell 2000 index fell  by 15.72 points, or 0.7 percent, at 2,311.41.

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