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Dow Finishes Higher, Nasdaq Jumps 1.4% and Bitcoin Rebounds

Stocks rise as investors focus on the strength of the U.S. economic recovery and put aside concerns about the impact of higher inflation.

Stocks ended solidly higher Monday as investors focused on the strength of the U.S. economic recovery and put aside concerns about the impact of higher inflation.

The Dow Jones Industrial Average finished up 186 points, or 0.54%, to 34,394, the S&P 500 gained 0.99% and the tech-heavy Nasdaq jumped 1.41%.

Shares of Microsoft  (MSFT) - Get Microsoft Corporation Report, Alphabet  (GOOGL) - Get Alphabet Inc. Report and Facebook  (FB) - Get Meta Platforms Inc. Report all gained more than 2% for the day.

Stocks finished mixed Friday as Wall Street weighed signs of a surge in U.S. economic activity against a slide in high-risk assets such as Bitcoin. For the week, the Dow fell 0.5%, the S&P 500 slipped 0.4% and the Nasdaq rose 0.3%.

The Dow and S&P 500 have declined for two straight weeks.

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Inflation concerns have eased though the recovering economy brings with it rising price pressures and fears the Federal Reserve could pull back on its extraordinary support.

Officials at the central bank repeatedly have said they expect any pick up in inflation to be temporary.

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Supply-chain bottlenecks, labor shortages and rising wages have been adding to inflationary pressures and eroding some corporate profit margins. But investors have appeared soothed by the Federal Reserve's pledge to continue buying $120 billion in bonds each month in order to keep interest rates at near-zero leels until at least early 2022.

"With the market pretty much range-bound these past two months, stocks head into the final full week of the month trying to break a two-week bull-bear stalemate," said Chris Larkin, managing director of trading and investing product at E*Trade.

"Fed minutes last week seemed to have been shrugged off as the Fed continues its wait and see posture, which added wind beneath the tech sector’s wings. Interestingly though we did see some discord among Fed officials - how the market interprets that in the coming days remains to be seen," he added. 

A weekend crackdown on commodity speculation in China pared gains for copper and iron ore. But oil prices rose nearly 2% amid a bullish outlook on crude prices from bankers at Goldman Sachs.

Bitcoin, meanwhile, was rising Monday after another turbulent weekend.

Bitcoin, the world's largest cryptocurrency, rebounded 20.96% to $39,769, according to CoinDesk. It fell Sunday afternoon to near $32,200, a drop of more 31% over the past seven days. In April, it recorded an all-time high of $64,829, according to CoinDesk.

Cryptocurrencies have experienced a very volatile month, moving moving on tweets and statements by Tesla  (TSLA) - Get Tesla Inc. Report CEO Elon Musk and later on word of federal tax regulations and a Chinese crackdown on use of the digital currencies.

Over the weekend, Musk gave renewed support for cryptocurrencies, replying to another Twitter user that the "true battle is between fiat & crypto. On balance, I support the latter."