Nasdaq, S&P Hit Record; Bond Yield Rises Over 6%
Optimism again ruled the stock market, driving two major indexes to records for a second day, even as gloom infected the bond market.</br></br>A report of unexpected manufacturing strength reawakened inflation worries among bond traders, who took back some of Wednesday's gains and pushed the benchmark 30-year bond's yield back above the 6% level.</br></br>But stock investors preferred to focus for a second day on the Federal Reserve's apparent reluctance to raise interest rates further this summer, and they sent stocks ahead for a fifth consecutive day. The Nasdaq Composite Index and the Standard & Poor's 500-stock index set records again. Dow Jones Industrial Average rose 95.62 points, or 0.87%, to 11066.42, just 40.77 points, or 0.37%, short of its May 13 record close of 11107.19.</br></br>"There was some money that was waiting on the sidelines, and had to get into the market once the Fed announcement came out" on Wednesday, said Warren Epstein, head trader at Richard A. Rosenblatt.</br></br>The Fed raised its target interest rate by a quarter-point but said it is "neutral" for the future, no longer leaning toward rate increases.