GLOBAL MARKETS-S&P 500, Dow scale new heights, Treasury yields rise on strong inflation data

(Updates to U.S. market close)
By Stephen Culp
NEW YORK, April 9 (Reuters) - The S&P 500 and the Dow
notched record closing highs on Friday after solid U.S.
inflation data and an uptick in Treasury yields suggested the
economic recovery from the pandemic-related recession was
gaining momentum.
"(It was) a fairly quiet Friday with low volume, a welcome
change from 12 months ago," said David Carter, chief investment
officer at Lenox Wealth Advisors in New York.
"Today was all about inflation," Carter added. "Despite
today's higher PPI number, equity markets are starting to
begrudgingly believe the Fed is in no rush to raise interest
rates."
All three major U.S. stock indexes posted weekly gains as
upbeat economic data boosted risk appetite ahead of
first-quarter earnings.
Transports, seen as a proxy for economic health, advanced
for their 10th week in a row.
"Cyclical parts of the market like transports are being
driven higher due to strong vaccination rates in the U.S., which
suggests the economic reopening may accelerate," Carter said.
A Labor Department report showed producer prices rose last
month at twice the speed of February's growth, reviving some
inflation worries.
U.S. Federal Reserve Chairman Jerome Powell offered
assurances on Thursday that the central bank is far more
concerned about the recent uptick in COVID-19 infections than
inflationary pressures. "Powell is not overly concerned about long-term inflation,"
said Ryan Detrick, senior market strategist at LPL Financial in
Charlotte, North Carolina. "The Fed has stressed from the very
beginning these increases will be transitory."
The Dow Jones Industrial Average .DJI rose 297.03 points,
or 0.89%, to 33,800.6, the S&P 500 .SPX gained 31.63 points,
or 0.77%, to 4,128.8 and the Nasdaq Composite .IXIC added
70.88 points, or 0.51%, to 13,900.19.
European stocks ended nominally higher, but marked their
longest winning streak since November 2019 on rising hopes of a
rapid economic rebound. The pan-European STOXX 600 index .STOXX rose 0.08% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
0.32%.
Emerging market stocks lost 0.97%. MSCI's broadest index of
Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.81%
lower, while Japan's Nikkei .N225 rose 0.20%.
U.S. Treasury yields rose in the wake of the PPI report,
which provided further evidence that the world's largest economy
was on a stable road to recovery from the pandemic. Benchmark 10-year notes US10YT=RR last fell 7/32 in price
to yield 1.655%, from 1.632% late on Thursday.
The 30-year bond US30YT=RR last fell 3/32 in price to
yield 2.327%, from 2.322% late on Thursday.
The dollar inched higher against a basket of world
currencies as inflation data lifted bond yields, but the
greenback had its softest week of the year due to
better-than-expected economic data and the dovish Fed.
The dollar index .DXY rose 0.11%, with the euro EUR=
down 0.07% to $1.1904.
The Japanese yen weakened 0.35% versus the greenback at
109.65 per dollar, while Sterling GBP= was last trading at
$1.3709, down 0.17% on the day.
Crude oil prices dropped on rising supply amid a mixed
picture on demand recovery from the COVID-19 slump. U.S. crude CLcv1 dipped 0.47% to settle at $59.32 per
barrel, while Brent crude LCOc1 settled at $62.95 per barrel,
falling 0.4% on the day.
Gold withdrew from Thursday's one-month peak, weighed down
by a rebounding dollar and rising Treasury yields. Still, the
safe-haven metal appears headed for its first weekly gain in
three. Spot gold XAU= dropped 0.8% to $1,742.64 an ounce.

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Global assets http://tmsnrt.rs/2jvdmXl
Global currencies vs. dollar http://tmsnrt.rs/2egbfVh
Emerging markets http://tmsnrt.rs/2ihRugV
MSCI All Country World Index Market Cap http://tmsnrt.rs/2EmTD6j
Dollar set for worst week of the year https://tmsnrt.rs/3mvEAdU
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