Stocks stall, S&P 500 still on track for a 3rd weekly gain

The front of the New York Stock Exchange is shown, Monday, May 24, 2021. Stocks are opening solidly higher on Wall Street Friday, June 11 keeping the S&P 500 on track for its third weekly gain in a row. The benchmark index was up 0.1%. (AP Photo/Mark Lennihan, File)

Stocks stalled in afternoon trading Friday, but the S&P 500 is still on pace for its third weekly gain in a row.

The S&P 500 gave up an early gain and was 0.1% lower as of 1:06 p.m. The Dow Jones Industrial Average fell 91 points, or 0.3%, to 34,375 and the Nasdaq Composite rose less than 0.1%. With the exception of the Dow, the indexes are on pace to close the week higher.

Technology and financial companies made some of the broadest gains. Chipmaker Nvidia rose 2.5% and Charles Schwab rose 1.7%. The gains were offset by a broad slide for health care stocks, with several companies giving investors disappointing development updates.

Vertex Pharmaceuticals dropped 9.7% after telling investors it will end development of a potential treatment for a genetic condition that targets the liver. Incyte fell 5.8% as its potential eczema cream ruxolitinib faces a delayed regulatory review.

Investors were relieved to see Thursday that a much-anticipated report showed that a big rise in consumer-level inflation last month was mostly attributed to temporary factors. That could mean less pressure on the Federal Reserve to pull back on its measures supporting the economy. The Fed holds its next meeting on interest rate policy next week.

“You kind of have this notion that worries about inflation from the investor base might have peaked,” said Ross Mayfield, investment strategist at Baird.

A significant share of May’s rise in consumer prices was tied to the sale of used cars, which is largely attributed to purchases by rental car companies beefing up their fleets as people return to traveling.

Bond yields have moved lower this week despite reports showing more strength in the economy and possible signs of inflation. The yield on the 10-year Treasury note was trading at 1.46%, down from 1.57% a week ago.

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7 Stocks to Buy For the Gig Economy

Before the global pandemic, it was referred to as a side hustle—a way for some individuals to make a little extra money. However, as the pandemic has changed the nature of how we work, and as consumers how we spend, the gig economy has become an essential way of life for many workers.

There is much that’s not known about the long-term effects of the pandemic. But if there’s one lesson we learn from history, it’s that there will be ripple effects. We believe that society will get back to something resembling normal. However, what that normal looks like may be different.

Americans were becoming less social since before the pandemic. Now consumers have begun to realize there truly is no reason to leave their house to shop for anything. And while many crave physical connection during these times, there will be many that have changed their purchasing habits for good.

Other elements of the gig economy, such as ride-hailing and home rentals, were devastated due to the pandemic. Those businesses are likely to come back.

And that’s why companies that have created the gig economy aren’t going away anytime soon. In this special report, we’ll highlight several stocks that investors should consider as the gig economy moves forward.

View the “7 Stocks to Buy For the Gig Economy”.

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