Stocks were mostly higher Friday but gains were limited after data from the U.S. and China renewed concerns over inflation despite assurances from Federal Reserve Chairman Jerome Powell that the central bank had the tools to curb higher prices.
The yield on the 10-year U.S. Treasury note rose Friday to 1.667%.
The Dow Jones Industrial Average rose 108 points, or 0.32%, to 33,611, the S&P 500 was up 0.05% and the Nasdaq fell 0.39%.
Tesla (TSLA) – Get Report was down 1.24% on Friday after the electric vehicle company raised prices on its U.S. lineup for the third time in the last month.
U.S. producer prices rose 1% in March, higher than forecasts. The data, delayed because the government website was frozen, point to underlying inflation pressures at the wholesale level. Producer prices over the past 12 months jumped to 4.2%, the highest level since September 2011.
In China, producer prices rose at the fastest pace in more than four years, while consumer prices moved higher as fuel costs jumped.
The S&P 500 closed Thursday at a record for a second day after Powell said he expected any inflation resulting from an economic recovery to be temporary, but if prices move “persistently and materially above levels we’re comfortable with” the central bank has the tools to curb them. The S&P 500 closed up 0.42% to 4,097.
An unexpected increase in the number of Americans filing for first-time unemployment benefits dented sentiment as evidence piles up that a U.S. recovery has a long way to go.
Oil prices in the U.S. slipped 0.03% Friday to $59.58 a barrel.