US STOCKS-Tech boost lifts S&P to record as U.S. Treasury yields retreat

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* Growth stocks outperform value stocks
* Canopy Growth down on deal to buy Supreme Cannabis
* Dow up 0.05%, S&P 500 up 0.40%, Nasdaq up 0.96%

(Updates to mid-afternoon, changes byline, adds Powell
comments)
By Chuck Mikolajczak
NEW YORK, April 8 (Reuters) - The S&P 500 hit a record high
on Thursday, as Treasury yields fell following
softer-than-anticipated labor market data and helped lift
technology and other growth stocks.
Weekly initial jobless claims data showed a second straight
rise, conflicting with the recent payrolls report, and
buttressed the Federal Reserve's dovish policy stance to keep
interest rates lower for a substantial period. Federal Reserve Chair Jerome Powell signaled on Wednesday
the central bank is nowhere near to reducing its support for the
U.S. economy, noting that an expected rise in prices this year
is likely to be temporary. The softer data helped yields on the benchmark 10-year U.S.
Treasury note fall as low as 1.628% for a second straight day as
it continues to back away from a 14-month high of 1.776% hit in
late March. "Both markets have been given the same communication and the
same information, but the bond market is thinking that when
inflation runs a little bit hot, the Fed is going to make
certain changes," said Mike Zigmont, head of research and
trading at Harvest Volatility Management in New York.
"And the equity market is thinking when inflation runs a
little bit hot, the Fed will make no changes."
The Dow Jones Industrial Average .DJI rose 18.07 points,
or 0.05%, to 33,464.33, the S&P 500 .SPX gained 16.25 points,
or 0.40%, to 4,096.2 and the Nasdaq Composite .IXIC added
130.75 points, or 0.96%, to 13,819.60.
The recent pullback in yields has helped high growth names
such as those in the technology .SPLRCT sector, the best
performing sector on the day, while megacap stocks such as Apple
AAPL.O , Microsoft MSFT.O and Amazon AMZN.O were the
biggest boosts to the S&P 500.
The gains have also sent the tech-heavy Nasdaq to a
seven-week high and within 2% of its February 12 record closing
high.
The Russell 1000 growth index .RLG , which consists of
tech-related stocks, gained 1.05%, while its value counterpart
.RLV , comprising mostly financials and energy names, slipped
0.11%.
Trading activity has also tapered off, with the three lowest
volume days of the year occurring this week ahead of
first-quarter earnings season next week with results from big
U.S. banks on tap. Analysts have raised expectations for
first-quarter S&P 500 earnings increase to 24.2%, according to
Refinitiv IBES data as of April 1, versus 21% forecast on Feb.
5.
Tesla Inc TSLA.O gained 2.02% on the Joe Biden
administration's $174 billion proposal to boost electric
vehicles. U.S. shares of Canopy Growth Corp CGC.O dropped about
4.54% on a deal to buy rival Supreme Cannabis Co Inc FIRE.TO
for C$323.3 million ($256.9 million), as the world's biggest
cannabis producer bolsters its portfolio to tap surging demand.

Advancing issues outnumbered declining ones on the NYSE by a
1.51-to-1 ratio; on Nasdaq, a 1.67-to-1 ratio favored advancers.
The S&P 500 posted 34 new 52-week highs and 1 new lows; the
Nasdaq Composite recorded 64 new highs and 25 new lows.