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Dow, S&P 500 End at Records as Wall Street Looks Past Inflation Worries

The Dow and S&P 500 close at records as investors look past signs of higher inflation in the U.S. and China.

The Dow Jones Industrial Average and the S&P 500 closed at records on Friday as investors looked past data from the U.S. and China that renewed concerns about higher inflation.

The yield on the 10-year U.S. Treasury note rose Friday to 1.653%.

The Dow finished up 297 points, or 0.89% to close at 33,800, while the S&P 500 posted its third straight record close, rising 0.77% to 4,128.

The Nasdaq gained 0.51% to close at 13,900 after trading lower for the early part of Friday's session.

For the week, the Dow gained 2%, the S&P 500 tacked on 2.7% and the Nasdaq advanced 3.1%.

Honeywell  (HON) - Get Honeywell International Inc. Report led the Dow higher on Friday, finishing 3.4% higher, after the stock was upgraded to buy at Deutsche Bank.

Boeing  (BA) - Get The Boeing Company Report shares fell 1% Friday after the aerospace giant said it was recommending customers address a potential electrical issue found within a specific group of 737 MAX aircraft.

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Tesla  (TSLA) - Get Tesla Inc. Report finished down 1% on Friday after the electric vehicle company raised prices on its U.S. lineup for the third time in the last month.

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U.S. producer prices rose 1% in March, higher than forecasts. The data, delayed because the government website was frozen, point to underlying inflation pressures at the wholesale level. Producer prices over the past 12 months jumped 4.2%, the highest level since September 2011.

In China, producer prices rose at the fastest pace in more than four years, while consumer prices moved higher as fuel costs jumped.

"Despite the confirmation of strong inflation numbers, U.S. Treasury rates did not jump to recent highs and the stock market continues to rise to new all-time highs on continued recovery hopes," said Louis Navellier, chairman and founder of Navellier & Associates in Reno, Nev. "It will take noticeably higher interest rates to slow down the stock market."

The S&P 500 closed Thursday at a record for a second day after Federal Reserve Chairman Jerome Powell said he expected any inflation resulting from an economic recovery to be temporary, but if prices move "persistently and materially above levels we’re comfortable with," the central bank has the tools to curb them. 

Oil prices in the U.S. settled 0.5% lower Friday to $59.32 a barrel.