S&P Builds on Record

U.S. stocks rose on Friday with the S&P 500 building on its rally to records, as investors bet that higher inflation will be temporary as the economy continues to recover from the pandemic.

The Dow Jones Industrials jumped 237.02 points to 34,433.84.

The S&P 500 hiked 14.21 points to 4,280.70

The NASDAQ tailed off 9.32 points from Thursday’s all-time record, to close the week at 14,360.39.

The S&P 500, which closed at a record Thursday, is up 2.6% for the week so far, which would be its best gain since early April. The Dow is up 3.2% this week and the NASDAQ is up 2.6% since last Friday.

Nike’s stock surged 14%, helping to boost sentiment for the Dow. The company reported earnings and revenue that blew past Wall Street estimates. Digital sales also jumped 41% since last year and 147% from two years ago.

On the flipside, FedEx dipped 4% despite beating on the top and bottom lines of its earnings. FedEx also gave a strong yearly outlook.

Shares of Caterpillar jumped 2.6% on optimism around an infrastructure deal on Thursday. The shares were higher by another 1% Friday.

Wall Street extended gains after a key inflation indicator that the Federal Reserve uses to set policy rose 3.4% in May, the fastest increase since the early 1990s, the Commerce Department reported Friday. The reading matched the expectation from economists polled by Dow Jones. The core index rose 0.5% for the month, which actually was below the 0.6% estimate.

President Joe Biden announced Thursday that the White House struck an infrastructure deal with a bipartisan group of senators. The lawmakers have worked for weeks to craft a roughly $1-trillion package that could get through Congress with support from both parties.

The framework will include $579 billion in new spending on transportation like roads, bridges and rail, electric vehicle infrastructure and electric transit, among other things.

Prices for 10-Year Treasurys were lower, raising yields to 1.52% from Thursday’s 1.49%. Treasury prices and yields move in opposite directions.

Oil prices gained 64 cents to $73.94 U.S. a barrel.

Gold prices regained $3.70 to $1,780.40 U.S. an ounce.