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Stock up, on track for fresh recordings

US stocks rose on Friday, pointing to the S&P 500, setting a new record after three consecutive weeks of profit.

The S&P 500 reported 0.1% per day after the market benchmark closed at a record high. The Dow Jones industrial average rose 0.3% and the Nasdaq Composite rose 0.1%.

Major indexes are moving close to record highs, leaving investors looking for some catalysts that could push the next stage into a sharp rally in March 2020. Fresh Biden administration spending plans that could lead to higher taxes, as well as high stock ratings and the emergence of new variants of Covid-19, make people more cautious. Money managers are also assessing whether rising inflation is likely to be temporary.

“We are still positive about the outlook, but we are not as optimistic as we were three months ago,”

; said Daniel Morris, chief market strategist at BNP Paribas Asset Management. “The market needs to rest and let profits reach prices.”

Some meme shares, which are heavily traded by individual investors, have risen. AMC Entertainment Holdings and GameStop collected more than 4%.

In the bond markets, the yield on the 10-year treasury note reached 1.459% from 1.458% on Thursday, which was the lowest level since March 2. Yields rise when prices fall. Yields fell for three consecutive days due to cool economic data and high demand from investors both in the United States and elsewhere.

The Labor Department said Thursday that the economic jump in the United States is leading to the biggest jump in inflation in nearly 13 years, with consumer prices rising 5 percent in May from a year ago. Investors have been worried for weeks that a sharp and sustained rise in inflation could force the Fed to weigh the end of its easy money policies in the coming quarters. Recently, inflation expectations in the market have weakened, but it remains a focal point for many people.

“Inflation is obviously the big risk there,” said Edward Park, chief investment officer at British investment firm Brooks Macdonald. “Some of the teeth have softened in the last 24 hours, but there is still a risk that the Fed will come out and say that maybe it’s more sustainable and that changes the narrative, so central banks still need to be careful. ”

Investors will receive fresh data showing whether Americans’ economic outlook has improved when the University of Michigan’s preliminary consumer sentiment index for this month is released at 10 a.m. ET.

The Pan-Continental Stoxx Europe 600 overseas rose 0.7% after closing at a record high on Thursday.

Major stock indexes in Asia ended with a mixed note. The Shanghai Composite Index fell 0.6%. South Korea’s Kospi index rose 0.8 percent, while Hong Kong’s Hang Seng index added nearly 0.4 percent.

Major stock indices have been narrowing in recent weeks.


carlo allegri / Reuters

Write to Caitlin Ostroff at caitlin.ostroff@wsj.com

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