The S&P 500 was set to ease from a record high at the open on Friday, as a spike in U.S. bond yields reignited inflation worries and dented appetite for high-growth stocks.
The S&P 500 slipped on Friday after hitting an all-time high in the prior session, as a spike in U.S. bond yields revived inflation worries and dented appetite for high-growth stocks.
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NEW YORK (Reuters) - The blue-chip Dow powered to its fifth consecutive record high on Friday and the S&P 500 closed slightly higher as investors bought shares that should benefit from a strong reopening of the U.S. economy, an outlook signaled by rising yields in the bond market.
The tech-heavy Nasdaq tumbled after rebounding more than 6% over the past three sessions as the rising bond yields revived inflation worries and dulled the appeal of high-growth technology shares.
The S&P 500 and Nasdaq posted their biggest weekly percentage gains since early February after President Joe Biden signed into law on Thursday one of the largest U.S. fiscal stimulus bills and data reinforced convictions the economy was headed to a high-growth recovery.
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NEW YORK (Reuters) - Investors concerned about demand for U.S. Treasury debt will be watching Wednesday’s 10-year auction for clues to where yields in the recently volatile market may be headed.
FILE PHOTO: A vehicle drives past the U.S. Treasury Department in Washington, D.C., U.S. December 13, 2020. Picture taken with a long exposure. REUTERS/Raphael Satter
The U.S. Treasury Department has increased debt issuance dramatically in the last year to fund coronavirus stimulus endeavors. Roughly $3.6 trillion of new government paper was issued in 2020 versus $2.9 trillion the year prior, according to SIFMA. With President Joe Biden’s $1.9 trillion fiscal package on the docket, issuance in 2021 is slated to rise to $4 trillion this year, according to ING.