US Stocks jumped to another record high last week as rising reopening optimism continued to encourage the rotation into cyclical stocks. Meanwhile, surging bond yields rekindled valuation fears and took the comeback momentum out of tech stocks.
According to the Labor Department the producer price index rose 0.5% in February. The gain was in line with the forecast of economists surveyed by the Wall Street Journal. Wholesale inflation jumped 1.3% in January, the biggest gain since 2009.
The Federal Reserve’s latest snapshot of U.S. household wealth showed that the rich got richer during the pandemic, contributing to a record combined household wealth of $130.2 trillion in the fourth quarter of 2020. Personal checking and savings accounts and money-market funds rose by $2.67 trillion to $16.5 trillion in 2020, even though yields were close to zero. Consumers also paid off a record $118.3 billion in credit card debt. The top 1 percent of U.S. households owned more than 30 percent of the wealth, by comparison, the bottom 50 percent owned just 2 percent of household wealth.