Business

S&P 500, Nasdaq ends higher in choppy sessions as inflation data threatens




  • All eyes on US KPI data on Wednesday
  • Peloton falls when CEO says business “thinly capitalized”
  • Indices: Dow down 0.3%, S&P 500 up 0.3%, Nasdaq up 1%

NEW YORK, May 10 (Reuters) – The S&P 500 and Nasdaq ended higher on Tuesday, with large growth stocks rising after the previous day’s sales as government interest rates fell.

Bank shares coincided with returns. The reference rate on 10-year banknotes fell from a maximum of more than three years to below 3%.

The Dow index also ended lower, and today’s trading was choppy, with large indices moving between gains and losses as investors were nervous ahead of the release of Wednesday’s US consumer price index data and Thursday’s producer price data.

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Investors will look for signs that inflation is at its peak. read more

Concerns that the US Federal Reserve will have to act more aggressively to curb inflation have driven recent market sales. A number of other concerns have increased the pressure.

“It’s just fear-based sales,” said Jake Dollarhide, CEO of Longbow Asset Management in Tulsa, Oklahoma.

“It can not just be that the Fed is going to raise interest rates to stave off inflation, because we’ve seen it before,” he said. Instead, investors have been concerned about everything from rates and inflation to the war in Ukraine, supply chain problems and China’s COVID-19 shutdowns, Dollarhide said.

Shares of Apple Inc (AAPL.O) rose 1.6%, giving the S&P 500 and Nasdaq their biggest boost.

The Dow Jones Industrial Average (.DJI) fell 84.96 points, or 0.26%, to 32,160.74, the S&P 500 (.SPX) fell 9.81 points, or 0.25%, to 4,001.05 and Nasdaq Composite (.14IC) 2 points. 0.98% to 11,737.67.

A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, USA, May 9, 2022. REUTERS / Brendan McDermid

Technology and growth stocks, whose valuations are to a greater extent dependent on future cash flows, have been among the hardest hit in recent sales. Nasdaq is down about 25% for the year so far.

S&P 500 technology (.SPLRCT) rose 1.6% on the day, leading to an upswing in the S&P 500 sector. The S&P 500 Growth Index (.IGX) was up 0.9%, while the S&P 500 Value Index (.IVX) was down 0.4%.

Investors digested comments from Cleveland Fed President Loretta Mester, who said the US economy would experience turbulence from the Fed’s efforts to bring inflation down more than three times above target, and that recent stock market volatility will not deter decision-makers. read more

US President Joe Biden said in a speech on Tuesday that addressed high inflation that he is considering eliminating Trump-era tariffs on China as a way to lower the prices of goods in the United States. read more

Among today’s winners, Pfizer Inc (PFE.N) shares rose 1.7% after saying they would pay $ 11.6 billion to buy Biohaven Pharmaceutical Holding Co. (BHVN.N). read more The Biohaven share rose 68.4%.

On the negative side, Peloton Interactive Inc (PTON.O) fell 8.7% when the fitness equipment manufacturer warned that the business was “sparsely capitalized” after a 23.6% drop in quarterly revenue. read more

Volume on US stock exchanges was 15.45 billion shares, compared to the average of 12.55 billion for the entire session over the last 20 trading days.

Falling issues were more than advancing on the NYSE with a ratio of 1.36 to 1; on the Nasdaq favored a ratio of 1.34 to 1 declines.

The S&P 500 posted 1 new 52-week highs and 63 new sediments; The Nasdaq Composite recorded 19 new highs and 1,066 new lows.

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Reporting by Caroline Valetkevitch; additional reporting from Amruta Khandekar and Devik Jain in Bengaluru; Edited by Sriraj Kalluvila, Shounak Dasgupta and Aurora Ellis

Our standards: Thomson Reuters Trust Principles.



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