An increasingly optimistic outlook for the US economy has led investors to drop government bonds on Friday and pile up in economically sensitive sectors of the stock market.
The S&P 500 rose 0.2%. Nasdaq Composite added 0.4%. The Dow Jones industrial average added around 88 points, or 0.3%.
In the bond markets, the yield on the 10-year treasury bill rose to 1.335% from 1.286% on Thursday.
The rise in stocks and bond yields comes as new economic data has sparked enthusiasm for the US recovery. On Friday, new data showed that US private sector business activity continued, stimulated by the acceleration of service activity and production output. This was followed on Wednesday by a report which showed that consumers used incentive controls to increase retail spending in January to the largest increase in seven months. Some economists have raised estimates of gross domestic product for the first quarter of the year.
Strategies JPMorgan Chase & Co. said on Friday that it expects consumers to break expectations for the rest of the year, given the expected fiscal stimulus and economic reopening as the pandemic eases. Meanwhile, Boston Federal Reserve Bank President Eric Rosengren said he expects the economy to bring steam this year as distributed vaccines.