Stock Market Today

Stock Market Today: Stocks Gain Ground as Dow, S&P 500 Hit New Highs

Traders shrugged off a higher-than-expected reading on inflation to power two of the three major indices to record closes.

Stocks climbed higher today, even as this morning's producer price index (PPI) showed the threat of rising inflation is all too real.

A report from the U.S. Labor Department indicated producer prices rose 1.0% in March, up from 0.5% in February. On a yearly basis, wholesale inflation jumped to 4.2% – its highest reading since September 2011.

"The annual rate of PPI inflation is benefiting from strong base effects given last year's weakness at the onset of the pandemic," says Blerina Uruci, senior U.S. economist at Barclays. "But momentum in monthly increases over the past three months has also been robust, pointing at... upside risks to near-term consumer prices as demand comes back online and supply-chain bottlenecks emerge."

The data didn't shake bulls, though, with the Dow gaining 0.9% to 33,800.60 – a new high – on strength in UnitedHealth (UNH, +3.1%) and Honeywell (HON, +3.2%). The S&P 500 hit a high of its own, adding 0.8% to 4,128.80, while the Nasdaq climbed 0.5% to 13,900.19. All three indices nabbed weekly wins, the third straight for the Dow and S&P.

Sign up for Kiplinger's FREE Investing Weekly e-letter for stock, ETF and mutual fund recommendations, and other investing advice.

Other action in the stock market today:

  • U.S. crude oil futures fell 28 cents, or 0.5%, to settle at $59.32 per barrel.
  • Gold futures gave back $13.40, or 0.8%, to end at $1,744.80 an ounce.
  • Amazon.com (AMZN) rose 2.2% to 3,372.20, after employees at its plant in Bessemer, Alabama, voted against unionizing.
  • Bitcoin prices tacked on 1.1% to $58,385.80. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m. each trading day.)
market chart 6321

YCharts

A quiet day for small caps in an otherwise big year

While blue chips spent the entire day in the green, the small-cap Russell 2000 didn't find positive territory until the final minutes of trading, ending fractionally higher at 2,243.47. The index has soundly outperformed its larger-cap counterparts in 2021, up 13.6% year-to-date.

"The U.S. economy is currently trending toward high-single-digit GDP growth in 2021 as COVID-19 vaccine distribution expands and we gradually emerge from the pandemic," says Lule Demmissie, president of Ally Invest. "That environment favors small-cap names, which tend to have a more domestic focus than larger multinational firms."

Here, we call out 7 of analysts' most-loved small-cap stocks that offer compelling valuation and appear poised for impressive growth.

Most Popular

In What Order Should You Tap Your Retirement Funds?
retirement planning

In What Order Should You Tap Your Retirement Funds?

Should you go with your IRA first or your brokerage account? Pulling money haphazardly can have negative implications. Instead follow this road map fo…
June 28, 2022
Your Guide to Roth Conversions
Special Report
Tax Breaks

Your Guide to Roth Conversions

A Kiplinger Special Report
February 25, 2021
5 Ways to Prepare for a Recession
recession

5 Ways to Prepare for a Recession

The signs seem to be pointing in one direction these days, so if you’re worried about being ready for a recession, consider taking these five measures…
June 28, 2022

Recommended

Stock Market Today (6/30/22): S&P Suffers Worst First Half Since 1970
Stock Market Today

Stock Market Today (6/30/22): S&P Suffers Worst First Half Since 1970

The major indexes produced a familiar result Thursday, finishing in the red to close out a dreary first six months of the year.
June 30, 2022
Can AI Beat the Market? 10 Stocks to Watch
stocks

Can AI Beat the Market? 10 Stocks to Watch

An artificial intelligence (AI) system identifying high-potential equities has been sharp in the past. Here are its 10 top stocks to watch over the ne…
June 30, 2022
Stock Market Today (6/29/22): Markets Steady, But Bed Bath, Cruise Lines Tumble
Stock Market Today

Stock Market Today (6/29/22): Markets Steady, But Bed Bath, Cruise Lines Tumble

The calmest market day of 2022 wasn't nearly so pleasant for a few individual stocks, including retailer BBBY and cruise operator CCL.
June 29, 2022
Stock Market Today (6/28/22): Weak Data Opens Trap Door Under Stocks
Stock Market Today

Stock Market Today (6/28/22): Weak Data Opens Trap Door Under Stocks

Slack in manufacturing data and low consumer confidence tanked early-session optimism and left the major indexes with deep losses Tuesday.
June 28, 2022