Stocks Climb to All-Time Highs While Bonds Retreat: Markets Wrap
A sign for Wall Street and American flags in New York, U.S. A stock exchange, such as the NYSE, is an example of a secondary market. (Photographer: Michael Nagle/Bloomberg)

Stocks Climb to All-Time Highs While Bonds Retreat: Markets Wrap

U.S. stocks registered more fresh record highs amid a broad-based rebound and Treasuries snapped an eight-day rally fueled by concerns about global growth amid the spread of Covid-19 variants.

The benchmark S&P 500 rose 1.1%, rebounding from the biggest one-day drop in about three weeks on Thursday. The Dow Jones Industrial, Nasdaq Composite and Nasdaq 100 indexes also finished at all-time highs on the same day with the S&P for a second time this month. Financial shares led the gains with rising yields increasing the outlook for profits. The dollar weakened against a basket of major currencies and oil gained for a second day.

“The market is still on a positive trajectory and obviously there are going to be bumps along the way,” said Leslie Thompson, managing member of Spectrum Management Group.

JPMorgan Asset Management, BlackRock Inc. and Morgan Stanley Wealth Management -- which together account for some $12 trillion in assets -- are among money managers betting global growth is still on track, with second-quarter earnings season starting next week set to bolster confidence. China’s central bank cut the amount of cash most banks must hold in reserve, while the European Central Bank on Thursday indicated it will tolerate an inflation overshoot, implying an even longer period of loose policy.

“It shows how schizophrenic the market can be,” said Norm Conley, chief executive officer of JAG Capital Management. “Only 60 days ago the narrative was that not only was the economy recovering, it was recovering too fast -- here we are now.”

Stocks Climb to All-Time Highs While Bonds Retreat: Markets Wrap

The 10-year Treasury yield still posted a second consecutive weekly decline. The 30-year yield broke below 1.90% on Thursday for the first time since February.

Meanwhile, tension between the U.S. and China continues to bubble. Washington added 34 Chinese entities to its economic blacklist over alleged human rights abuses and high-tech surveillance in Xinjiang.

Elsewhere, Biogen shares fell after the head of the U.S. Food and Drug Administration said she is seeking a federal investigation of the approval of the Alzheimer’s disease drug Aduhelm, a highly unusual step that will increase scrutiny of a heavily criticized clearance.

Oil registered its first weekly loss since May after being whipsawed by the OPEC+ dispute. Bitcoin trended higher after trading most of the week in a narrow range, emblematic of a reduced ardor for speculative investments like cryptocurrencies and meme stocks.

Stocks Climb to All-Time Highs While Bonds Retreat: Markets Wrap

On the virus front, Pfizer Inc. plans to request U.S. emergency authorization in August for a third booster dose of its Covid-19 vaccine and said it’s confident it will be effective against the more-virulent delta variant. South Korea will raise curbs on social distancing to the highest level in Seoul for two weeks starting Monday.

For more market commentary, follow the MLIV blog.

These are some of the main moves in financial markets:

Stocks

  • The S&P 500 rose 1.1% as of 4:01 p.m. New York time
  • The Nasdaq 100 rose 0.7%
  • The Dow Jones Industrial Average rose 1.3%
  • The MSCI World index rose 1%

Currencies

  • The Bloomberg Dollar Spot Index fell 0.4%
  • The euro rose 0.3% to $1.1880
  • The British pound rose 0.8% to $1.3893
  • The Japanese yen fell 0.4% to 110.13 per dollar

Bonds

  • The yield on 10-year Treasuries advanced seven basis points to 1.36%
  • Germany’s 10-year yield advanced one basis point to -0.29%
  • Britain’s 10-year yield advanced four basis points to 0.66%

Commodities

  • West Texas Intermediate crude rose 2.3% to $74.61 a barrel
  • Gold futures rose 0.5% to $1,809 an ounce

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