The stock market rose on Friday – extending this week’s rally – despite consumer prices, which rose 6.8% last month, the highest rate of inflation in nearly 40 years, according to data released by the Labor Department.
The Dow Jones Industrial Average rose 0.6% to over 200 points, while the S&P 500 rose nearly 1% and the Nasdaq Composite rose 0.7%.
While markets plummeted following the news of the first Omicron case in the US last week, stocks recently rebounded as investors became less afraid of the Covid-Omicron variant – and the S&P 500 hit a new one on Friday Record high.
Even a poor inflation read on Friday morning wasn’t enough to scare investors: consumer prices rose 6.8% in the 12 months to November, according to Labor Department data, which shows inflation at nearly 40-year highs.
Expecting an even higher rate of inflation, some investors were relieved by the news and sent stocks up, while others remain bullish about the ongoing economic recovery fueled by a strong labor market rebound.
Technology giant Oracle stocks rose over 15% a day after beating quarterly earnings estimates, while stocks in home fitness company Peloton added to the previous day’s losses and fell over 5% on Friday.
Vaccine maker Moderna, meanwhile, fell nearly 6% as investors wait for more data and updates on the effectiveness of the company’s Covid treatments against the Omicron variant.