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S&P 500 and Dow Rise on Inflation; Nasdaq has stability, with fears

  • The US Labor Department’s report showed the consumer price index rose 0.3% last month, the smallest gain since August 2021, but still above economists’ forecast for a 0.2% rise.

The indices S&P 500 and dow jones rose amid shaky trading on Wednesday, fueled by gains in shares in banks and companies in energywhile the Nasdaqwith a strong paperweight of technologywas under some pressure after data from inflation consolidate expectations of aggressive increases in fees North Americans.

Ten of the S&P’s 11 major sectors advanced on the day. Energy stocks gained 3.4% on energy prices. Petroleum rising more than 4%, driven by supply concerns.

The financial sector advanced 1.1%, while banks jumped 1.5%, following yields on ten-year Treasuries, which returned to above 3% on Wednesday.

However, the prospect of higher interest rates in U.S affected mega-cap stocks such as amazon.with, Microsoft Corp. apple Inc, Meta Platforms and Tesla Inc, which lost between 0.2% and 0.8%.

The US Labor Department’s report showed the consumer price index rose 0.3% last month, the smallest gain since August 2021, but still above economists’ forecast for a 0.2% rise.

The monthly price rise was much smaller compared to the 1.2% jump recorded in March, which had been the most intense since September 2005, but traders are still pricing in a 77% chance of a 0.75% tightening. percentage point in interest Federal Reserve in the next month.

“The data underscores that inflation and rising prices are likely not yet peaking,” said Greg Bassuk, chief executive of AXS Investments in Port Chester, New York.

At 12:05 (GMT) the S&P 500 index gained 0.89% to 4,036.60 points, while the Dow Jones was up 0.76% to 32,406.47 points. The Nasdaq Composite technology index rose 0.05% to 11,743.92 points.

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