HomeLatest News & UpdatesWall St rises as inflation data bolsters bets on fewer rate hikes...
- Advertisment -

Wall St rises as inflation data bolsters bets on fewer rate hikes – Markets IV News

- Advertisment -
- Advertisment -
- Advertisement -

irshi Videos News latest,

- Advertisement -

Wall Street’s main indexes rose on Tuesday after consumer prices in the world’s largest economy rose in line with expectations, fueling bets on a smaller rate hike from the Federal Reserve at its next meeting.

Data showed the US consumer price index (CPI) rose 0.4% in February, compared with 0.5% a month ago. On an annual basis, it rose by 6.0% last month compared to 6.4% in the previous month.

- Advertisement -

Excluding volatile food and energy factors, the consumer price index rose by 0.5% after rising by 0.4% in January. In the 12 months to February, the so-called core index of consumer prices rose by 5.5% after rising by 5.6% in January.

Traders stuck to bets on a 25 basis point rate hike at the Fed’s next meeting in March, with the odds of a rate hike falling to just 17%.

- Advertisement -

Shares have been hammered in recent days following the collapse of SVB Financial Group and peer Signature Bank and on fears of risks to other banks from the Fed’s sharp rate hikes.

Investors are hoping that the threat of a financial crisis will force the US Federal Reserve to ease monetary policy.

“Given the events of the weekend, I don’t think it could have been a more perfect number. It shows that inflation is developing as the Fed has anticipated and wanted,” said Kim Forrest, chief investment officer at Bokeh Capital Partners, Pittsburgh.

“The Fed will not be overly aggressive and hurt banks more by raising interest rates.”

Shares of regional banks rallied after suffering double-digit losses in recent days, with the KBW Regional Banking index up 7.7%.

First Republic Bank rose 52.7% before trading in its shares was suspended due to volatility. Shares in Western Alliance Bancorp were also suspended. The S&P 500 banking index rose 3.9% after posting its biggest one-day decline since June 2020 in the previous session. Meta Platforms Inc rose 5.8% after the Facebook parent said it would cut 10,000 jobs in a second round of mass layoffs.

Other major tech and growth stocks such as Apple, Alphabet Inc and Tesla rose between 1% and 4% in early trading.

At 9:38 a.m. ET, the Dow Jones industrial average was up 305.98 points, or 0.96%, at 32,125.12, the S&P 500 was up 57.28 points, or 1.49%, at 3,913.04 and the Nasdaq was up 1.90%. points or 3.90 points or 3.90 points. %, to 11,382.74.

Shares of ride-hailing companies Uber Technologies Inc and Lyft Inc rose 7% and 8.6%, respectively, after a California state court revived a ballot measure that allowed the app-based service to treat drivers as independent contractors rather than employees.

United Airlines Holdings Inc fell 6.2% after the US carrier on Monday forecast an unexpected loss for the current quarter.

Advancing issues outnumbered decliners by a 7.92 to 1 ratio on the NYSE and by a 4.87 to 1 ratio on the Nasdaq.

The S&P posted no new 52-week highs and no new lows, while the Nasdaq posted 9 new highs and 36 new lows.


- Advertisement -
- Advertisment -

Most Popular