Stocks ended mixed on Monday as investors weighed the prospects of higher inflation and rates in the U.S. against Friday’s solid print on the U.S. labor market recovery. 

[Click here to read what’s moving markets heading into Tuesday, June 8]

On Sunday, U.S. Treasury Secretary Janet Yellen suggested higher interest rates “would actually be a plus for society’s point of view and the Fed’s point of view,” according to an interview with Bloomberg. She added that President Joe Biden should push ahead with his sweeping multi-trillion-dollar infrastructure plan even if the elevated spending contributes to longer-lasting inflation and higher interest rates. 

The statements appeared to solidify that at least some policymakers were comfortable with rising inflation and rates, even as investors have eyed these scenarios with increasing nervousness over their implications for equity prices. 

“Inflation can become a headwind to valuations if it…

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