The Stock Market Climbed Because Tumbling Bond Yields Don’t Mean What They Used To

The Stock Market Climbed Because Tumbling Bond Yields Don’t Mean What They Used To

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The bond market did it“”though just what "it“ is remains unclear.

Here's what we know. This past week's economic data were spectacular. Weekly jobless claims tumbled to 576,000, the lowest level of the pandemic, consumer inflation rose in March at a quicker-than-expected 2.6% year over year, and March's retail sales, boosted by government payouts, surged 9.8% over February's. The 10-year Treasury yield responded by falling as low as 1.536% on Thursday, its lowest trading level since March 12“”a sign, perhaps, that the bond market is concerned about the future path of economic growth.

Normally, we'd be worried about the bond market's message because we all know that it's always right. This time, we're not so sure. Stocks had a great week, with the



Dow Jones Industrial Average



gaining 400.07 points, or 1.2%, to 34,200.67, while the



S&P 500 index