S&P 500, Dow up after inflation data, Nasdaq down on rate hike worries

Merchants work on the ground of the New York Inventory Change (NYSE) in New York Metropolis, U.S., Might 10, 2022. REUTERS/Brendan McDermid

Might 11 (Reuters) – The S&P 500 and the Dow rose in uneven buying and selling on Wednesday as banks and vitality shares gained, whereas the tech-heavy Nasdaq got here below stress after inflation knowledge cemented expectations of aggressive rate of interest hikes.

Ten of the 11 main S&P sectors superior in morning commerce. Power (.SPNY) gained 3.4% as oil costs jumped over 4% buoyed by provide considerations.

Financials (.SPSY) added 1.1% and banks (.SPXBK) climbed 1.5%, monitoring the benchmark 10-year Treasury yield which climbed again above 3%.

Nevertheless, the prospect of rising rates of interest dented megacap shares equivalent to Amazon.com (AMZN.O), Microsoft Corp (MSFT.O), Apple Inc (AAPL.O),Meta Platforms (FB.O) and Tesla Inc (TSLA.O), which fell between 0.2% and 0.8%.

The Labor Division’s report confirmed shopper value index rose 0.3% final month, the smallest acquire since August, however nonetheless above economists’ forecast of a 0.2% rise. learn extra

The month-to-month rise in inflation was a lot smaller in comparison with the 1.2% surge in March, the most important improve since September 2005, however merchants are nonetheless pricing in a 77% likelihood of a 75-basis level hike subsequent month. IRPR

“The info underscores that inflation and rising costs possible has not but peaked,” mentioned Greg Bassuk, chief government at AXS Investments in Port Chester, New York.

“With provide chain considerations and a probably extra aggressive Federal Reserve coverage, the probability of not solely a U.S. however a worldwide recession is unquestionably going to be weighing closely on the markets.”

The battle in Ukraine coupled with newest coronavirus lockdowns in China have deepened investor worries about faltering world financial progress.

At 10:14 a.m. ET, the Dow Jones Industrial Common (.DJI) was up 232.89 factors, or 0.72%, at 32,393.63, the S&P 500 (.SPX) was up 21.84 factors, or 0.55%, at 4,022.89, and the Nasdaq Composite (.IXIC) was down 15.61 factors, or 0.13%, at 11,722.06.

The Nasdaq held close to an 18-month low hit earlier this week as traders dumped megacap progress shares amid worries that rising charges will future money flows.

Coinbase World Inc (COIN.O) fell 22.1% after first-quarter income missed estimates amid a turmoil in world markets which has curbed investor urge for food for threat belongings. learn extra

Advancing points outnumbered decliners by a 2.26-to-1 ratio on the NYSE and a 1.09-to-1 ratio on the Nasdaq.

The S&P index recorded one new 52-week highs and 53 new lows, whereas the Nasdaq recorded 10 new highs and 751 new lows.

Reporting by Amruta Khandekar, Devik Jain and Bansari Mayur Kamdar in Bengaluru; Modifying by Arun Koyyur

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