U.S. Federal Reserve officials this week again stressed that the current higher inflation rate wouldn’t last long enough to put pressure on the U.S. economic rebound.
On Wednesday, bitcoin dived 30% to nearly $30,000 at one point, before paring some of those losses.
Global equities retreated earlier in the week as higher-than-expected U.S. inflation numbers “spooked” markets.
The narrative that the U.S. economy may be “overheating” received a “cold water” blow on Friday, after a U.S. jobs report indicated that only 266,000 jobs were added in April, compared with an expectation for a gain of nearly one million.
The S&P 500 notched its third straight month of gains in April, adding more than 5% to the index. The Dow Jones rose about 2.7%, while the Nasdaq Composite gained 5.4% for the month.
US equities turned lower on Thursday on news that U.S. President Biden is planning to nearly double the capital gains tax rate for taxpayers who earn more than USD 1 million a year.
Major U.S. indices reached new all-time highs this week, supported by strong economic and earnings data.
U.S. stocks strengthened over the week as investors focused on the prospects of a robust economic rebound, improving vaccine supplies and increasing vaccination rates.