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NEW YORK, May 27 Reuters U.S. stocks advanced slightly on Thursday, as data showing improvement in the labor market helped bolster expectations in the economic recovery and spurred a minor rotation towards stocks seen as more likely to benefit from the rebound.
The number of Americans filing new unemployment claims dropped more than expected last week to a 14month low of 406,000 as pandemic restrictions continue to be lifted, while a separate report showed business spending on equipment picked up speed.
The data helped lift U.S. Treasury yields, with the benchmark 10year note reaching a high of 1.625 and denting the attractiveness of highergrowth names in areas such as technology while helping those seen as more likely to benefit from an improving economy such as financials and small caps.
Still, the 10year yield remained within the range it has been in for several days, which served to keep inflation concerns in check and limited the rotation within sectors.
Investors have been closely watching economic data and comments from Federal Reserve officials for signs of runaway inflation and the possibility the central bank may begin to pull back on its massive stimulus measures.
When you look at the jobless claims that actually shows were continuing to make progress, if we get a strong jobs report in the next…