Stock Market Rises Despite Inflation Fears

Strategic Insights -

The stock market continued its upward trend yesterday, with leading indexes advancing despite concerns about inflation. The Nasdaq composite index set a new record, while economically sensitive stocks like Caterpillar and Alcoa rose. Technology stocks such as Tele-Communications, Oracle, and Lotus helped lift the Nasdaq index. The Dow Jones industrial average advanced 16.99 points to 3,865.14, and the Standard & Poor's 500 rose 1.48 points to 470.90. The bond market, however, failed to keep pace, with the yield on the 30-year Government bond reaching 6.82 percent, up 2 basis points.

Key Takeaways:

  • The Nasdaq composite index set a new record, rising 4.86 points to 803.85.
  • Economically sensitive stocks such as Caterpillar and Alcoa rose, despite concerns about inflation.
  • The Dow Jones industrial average advanced 16.99 points to 3,865.14, and the Standard & Poor's 500 rose 1.48 points to 470.90.
  • The bond market did not participate in the gains, with the yield on the 30-year Government bond reaching 6.82 percent, up 2 basis points.
  • Intel, the dominant maker of computer chips, rose 3/8 to 72 1/4, despite inroads by Intel rivals.
  • Hanson P.L.C.'s American depository receipts were the most actively traded issue on the Big Board, with 7.9 million shares changing hands.

Statistics:

  • The Nasdaq composite index rose 4.86 points to 803.85.
  • The Dow Jones industrial average advanced 16.99 points to 3,865.14.
  • The Standard & Poor's 500 rose 1.48 points to 470.90.
  • The yield on the 30-year Government bond reached 6.82 percent, up 2 basis points.
  • 7.9 million shares of Hanson P.L.C.'s American depository receipts changed hands.

Sources:

  • The New York Times (date not specified)
  • The Wall Street Journal (date not specified)
  • "The Favorite Stocks" table, The New York Times (date not specified)