The Dow Jones Industrial Average climbed more than 450 points to a record close Wednesday after fresh inflation data showed a muted increase and eased fears of a rapid rise in interest rates.
The blue-chip index jumped 464.28 points, or 1.5%, to 32297.02, marking its 11th record of 2021 and first close above 32000.
The S&P 500 gained 23.37 points, or 0.6%, to 3898.81. The Nasdaq Composite, meanwhile, lost 4.99 points, or less than 0.1%, to 13068.83, after rising more than 1.5% in morning trading on the back of Tuesday’s rally.
The gains for staid Dow stocks and losses for momentum-driven tech stocks are becoming a familiar pattern. Markets have seesawed in the past few weeks as investors have watched yields on U.S. government debt surge amid expectations of both higher inflation and an economic recovery.
Those higher yields have narrowed the relative valuation gap between safer bonds and riskier stocks and made bond returns more attractive to some investors.
