Stocks traded mixed Monday as Wall Street measured inflation risks and what implication a global tax agreement would have on the biggest technology companies in the U.S.
The Dow Jones Industrial Average rose 40 points, or 0.12%, to 34,797, the S&P 500 dipped 0.01% and the Nasdaq was down 0.13% as investors weighed the impact a 15% global corporate tax agreement secured by the G-7 over the weekend would have on the tech giants.
The G-7 agreement, while certainly historic, must also find approval among recalcitrant leaders of the G-20 before its has any impact on tech giants such as Apple , Alphabet’s Google, Facebook and Amazon . That process could take several years.
Stocks finished higher Friday and tech shares surged after the U.S. added fewer-than-expected jobs to payrolls in May, leading investors to believe the Federal Reserve won’t be paring back its $120 billion of monthly asset purchases anytime soon. The S&P 500 closed at 4,229, just short of a record high.
The Dow gained 0.7% for the week, the S&P 500 rose 0.6% and the Nasdaq added 0.5%.
Wall Street this week will be awaiting Thursday’s report on consumer prices for further signs of inflation risks. The Federal Reserve has argued that any spikes in inflation as the economy recovers from the coronavirus pandemic will be transitory.
Treasury Secretary Janet Yellen said President Joe Biden should push forward with his $4 trillion spending plans even if they cause an inflation spike into next year. She also told Bloomberg in an interview that slightly higher interest rates would be a plus.
“If we ended up with a slightly higher interest rate
environment it would actually be a plus for society’s point of
view and the Fed’s point of view,” Yellen told Bloomberg.
The yield on the benchmark 10-year Treasury was up slightly to 1.572% on Monday.
Biogen was rising Monday as investors awaited the Food and Drug Administration’s decision on whether to clear the company’s aducanumab Alzheimer’s drug.
An approval would make aducanumab the first authorized treatment for Alzheimer’s, the memory-destroying disease.
Tesla declined Monday amid lingering concerns over the pace of car sales in China and a move by founder and CEO Elon Musk to pull the plug on the higher-end version of the company’s Model S Plaid sedan.
Bitcoin was up slightly Monday, rising 1.92% to $36,528. The world’s largest cryptocurrency set a record high of more than $64,000 in mid-April.
El Salvador President Nayib Bukele said he was putting together proposed legislation to make Bitcoin legal tender alongside the U.S. dollar in the Central American nation.
This article was originally published by TheStreet.