Producers of metals, grains and other raw materials rose as the U.S. dollar slipped in the wake of inflation data.
The consumer-price index rose 3.3% in March, reflecting a spike in energy costs. Core inflation, which excludes the volatile food and energy categories, rose 2.6%, a more muted rate but still above the Federal Reserve's long-term target.
Traders are optimistic that the Strait of Hormuz will soon reopen, easing inflation pressures. One brokerage said those hopes may be complacency.
"The ongoing conflict in the Middle East is again revealing how fragile global supply chains have become as the world continues to shift from a post-Cold War order of globalization to a more multipolar model," said strategists at the Morgan Stanley Institute, a research arm of the bank, in a note to clients. "For example, Asia faces shortages in fertilizer (impacting food supply), chemicals (tech hardware production), and plastics (autos and pharmaceuticals), sparking double-digit price increases for these inputs in just a few weeks' time. Even a rapid reopening of the Strait could leave an 'air pocket' as supply chains normalize slowly."
The strategists recommended that corporations develop "antifragility" strategies to manage increasingly frequent supply-chain disruptions.
Live cattle futures hit a new record high, with the most-active contract closing up 0.8% to over $2.49 a pound Friday.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
04-10-26 1705ET
