Reopening Trade Roars Back, Fueling Stock Rally: Markets Wrap
- U.S. factory growth unexpectedly advances to four-month high
- Inflation gauge has largest annual increase since 1991
This article is for subscribers only.
Stocks climbed as prospects for a pickup in growth outweighed concern over inflation pressures at a time when the Federal Reserve is getting ready to wind down its pandemic-era stimulus.
Promising results for Merck & Co.’s experimental Covid-19 pill triggered a rally in companies that stand to benefit from an economic reopening. Commodity and financial shares were among the biggest gainers in the S&P 500, while a gauge of small caps jumped 1.7%. Airlines, cruise operators, hotels and amusement parks soared.