Wall St stocks are on their way to a better week in April after the Biden deal

Shares of Wall Street hit a record high on Friday as investors raised their U.S. inflation reading to focus on President Joe Biden’s latest stimulus deal.

The S&P 500 rose 0.3 percent at lunchtime in New York, and the blue chip index was set to break another record. The broad benchmark had a 2.7 percent weekly gain, had its best performance since early April, and was flat for the technology-based Nasdaq Composite session.

It was hit by U.S. stock markets maximums ever On Thursday, Biden spent about $ 1 million on infrastructure spending, boosting industrial, energy and financial stocks.

The infrastructure deal released data showing basic personal consumption spending in the U.S. on Friday – a measure favored by the Federal Reserve for price increases – which rose 3.4 percent in the 12 months to May, the highest year-on-year increase for 29 years.

The month-on-month rise in inflation was below economists ’expectations, however, which may have eased some pressure on the US central bank to change its ultra-loose monetary policy.

“We’re seeing a small disappointment with stocks that are also supported by new infrastructure,” said Keith Parker, UBS’s chief U.S. equity strategist. He added that while the profits from the reopening of the U.S. economy were reaping the benefits of the earnings in the second quarter, it was also a “strong wind”.

After government debt prices eased after inflation data, the benchmark 10-year U.S. Treasury yield rose 0.04 percentage points to 1.53 percent.

Investors with bonds, who are more sensitive to inflation than stocks, fear that price increases will be more sustainable. For the first time since April 2018, inflation was the loan that investors were most worried about, according to a Bank of America survey released on Friday.

“There is no doubt that inflation prints will remain high in the coming months,” said Francesco Sandrini, Amundi’s chief multi-asset strategist.

“But they are making an effort to gain confidence in what the markets need to do,” Fed officials said after the confusing messages, whether the price increase should be a tighter monetary policy.

Faith chair Jay Powell said the price hike was “temporary,” but St. Louis Faith President James Bullard said Thursday he thought the price hike could be problematic. “It’s a new risk to keep inflation from rising,” he said presentation.

Strategist Sean Markowicz Schroders said: “What we can see next year is that higher commodity prices will lead to higher entry prices, higher consumer prices and then higher wages.”

This left open the question of Powell’s “transient” inflation “which means six, 12, 18 months or more,” Markowicz added.

In Europe, the Stoxx 600 index closed 0.1 percent, and the benchmark across the continent rose 1.2 percent for the week.

Oil rose sharply in the last period, as Brent crude rose 0.6 percent to more than $ 76 a barrel, the highest record in the world since October 2018.