The Dow Jones Industrial Average opened up on Friday for the sixth day, maintaining the record levels hit in recent days as Wall Street looks set for its best week in more than a month.
However, after hitting an all-time high on Thursday, the S&P 500 dipped at the market opening. As did the tech-centric Nasdaq, though it held on to the rebound it made from a significant dip early in the week.
That dip was caused by investors favoring energy, mining, and industrials companies poised to benefit more from an economic recovery and stimulus.
At 10am the Dow stood at 32,620, up 135.27 points from the opening bell; the S&P was at 3,931, down 8.15; and the Nasdaq stood at 13,261, down 137.43.
A spike in US bond yields reignited inflation worries and dented appetite for high-growth stocks. Improving economic data and more fiscal stimulus have added to concerns of higher inflation despite assurances from the Federal Reserve to maintain an accommodative policy. A policy meeting next week from which the market will look for cues on inflation policy.
Nevertheless, the market set for its best week in over a month on the back of the American Rescue Plan being signed into law on Thursday by President Joe Biden, and first-time unemployment claims falling to 712,000 last week, the lowest level since early November.
Data on US consumer sentiment released by the University of Michigan on Friday morning saw confidence jump to levels not seen since March 2020.
Globally, stocks have dipped so far on Friday despite the signing of the $1.9 trillion stimulus package into law. There are fresh concerns over rising cases of Covid-19 in Europe taking the edge off investor confidence.
Notable on Thursday was the US trading debut of South Korean e-commerce giant Coupang — the largest foreign company to make its debut since China’s Alibaba went public in 2014.
Often compared to Amazon, Coupang’s shares finished the day 70 per cent higher, making it the largest US IPO of the year to date with a value of $108.9 billion.
With additional reporting by Reuters
