By Yasin Ebrahim

Investing.com – The S&P 500 closed at a record Friday, shrugging off the the fastest pace of inflation in 39 years as investors continued to pile into tech stocks as U.S. Treasury yields fell. 

 The rose 0.95% to close at a record of 4,712.02. Nasdaq gained 0.73%, or 0.6%, with an additional 216 points.

Although November’s inflation rose 0.8% more than anticipated, the annual consumer prices increased 6.8% year-on–year, consistent with the expectations and at the fastest pace since June 1982.

“People expected a very large number of people to be there, but they were surprised when it came.” […] that’s why there’s a muted market reaction to this inflation report,” Chief Investment Officer of Opportunistic All Cap Equity Strategy at Spouting Rock Asset Rhys Williams told Investing.com in an interview on Friday.

Markets were not surprised by the multi-decade high rate of inflation. It was also largely priced in. This comes as investors expect the Federal Reserve will speed up bond tapering and become more hawkish during its next monetary policy meeting.

“Powell said two weeks ago that the Fed will discuss increasing the taper and inflation wasn’t transitory … that would suggest that the market is expecting increased hawkishness at the Fed meeting, compared to a month or two ago,” Williams added.

In-line inflation was a backdrop to which Treasury yields dropped sharply. This pushed tech and growth markets – highly sensitive rates – higher.

Tech’s rise was also helped by falling interest rates and better-than-expected quarterly results of Broadcom and Oracle.

Broadcom (NASDAQ 🙂 gained more than 8% Thursday as Broadcom raised its quarterly dividend to $10 billion and annouced a share buyback of the shares. Broadcom’s fiscal fourth-quarter results exceeded all expectations due to increased enterprise cloud and service demand.

“While FY21 experienced a meaningful rebound in Cloud, FY22 is likely to be characterized by sustained momentum in core enterprise and along with still tight supply and ASP [average selling price] tailwinds especially in 1HCY22, should support another double digit year of rev growth,” Credit Suisse said.

Oracle (NYSE: ) announced fiscal fourth quarter results which exceeded Wall Street expectations, pushing its shares up more than 15%

A defensive market corner, Consumer Stabilities, is also on the rise, led by more than 55% increase in Costco’s (NASDAQ:), following improved-than-expected quarter-end results.

In other news, Beyond Meat (NASDAQ:) slipped 8% as Taco Bell reportedly is set to abandon plans to trial Beyond Meat’s plant-based version of carne asada, Bloomberg reported.