A trader works on the floor of the New York Stock Exchange (NYSE) in New York, USA, May 9, 2022. REUTERS / Brendan McDermid
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- All looks at US consumer price index data on Wednesday
- Peloton falls as CEO says business is “poorly capitalized”
NEW YORK, May 10 (Reuters) – The S&P 500 and Nasdaq closed higher on Tuesday, with high-rise stocks rising after a sell-out from the previous day as government bond yields fell.
At the same time, bank shares fell. The yield on the 10-year reference banknote fell from a three-year high to below 3%.
Daily trading was volatile, with major indices moving between gains and losses, as investors were also nervous ahead of Wednesday’s release of US consumer price index data and producer price data on Thursday.
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Investors will look for signs that inflation is reaching its peak. Read more
Concerns that the US Federal Reserve may need to act more aggressively to curb inflation have led to a recent sell-off in the market. Many other fears increased the pressure.
“Right now, it’s just a fear-based sale,” said Jake Dollarheid, chief executive of Longbow Asset Management in Tulsa, Oklahoma.
“The Fed can’t just raise interest rates to prevent inflation, because we’ve seen that before,” he said. Instead, investors are worried about everything from interest rates and inflation to the war in Ukraine, supply chain problems and the blocking of COVID-19 in China, Dollarhide said.
Shares of Apple Inc (AAPL.O) were higher, giving the S&P 500 and Nasdaq the biggest boost. S&P 500 (.SPLRCT) technology has led to profits among sectors in the S&P 500.
According to preliminary data, the S&P 500 (.SPX) rose 10.77 points, or 0.27% to end at 4002.01 points, while the Nasdaq Composite (.IXIC) rose 114.11 points, or 0.98 %, to 11,737.35. The Dow Jones Industrial Average (.DJI) fell 82.39 points, or 0.26%, to 32,163.31.
Investors have heeded comments from Cleveland Fed President Loretta Mester, who said the US economy would be troubled by the Fed’s efforts to cut inflation more than three times its target, and recent stock market volatility would not deter politicians. Read more
Peloton Interactive Inc (PTON.O) collapsed when a fitness equipment manufacturer warned that the business was “weakly capitalized” after reporting a 23.6% drop in quarterly revenue. Read more
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Report by Caroline Valetkevich; additional reports by Amruta Khandekar and Devik Jain in Bengaluru; Edited by Sriraj Kalluvila, Shounak Dasgupta and Aurora Ellis
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