US stocks rally as better inflation data raises Fed hopes
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Traders working on the floor of the New York Stock Exchange in New York City.
PHOTO: REUTERS
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NEW YORK – Large tech shares led the market on Thursday, lifting US stocks to strong gains following better inflation data that added to hopes of a shift in Federal Reserve monetary policy.
Shares of Apple, Netflix and Google parent Alphabet rose at least 2 per cent following a report on United States wholesale prices, which declined 0.5 per cent in March.
The report came on the heels of government data on Wednesday that showed a generally improving pricing picture, although inflation remained elevated when food and energy costs were stripped out.
“Inflation is on a slowing trend,” said LBBW bank’s Mr Karl Haeling. “There is definitely an optimism that the end is near in terms of the Fed’s cycle of interest rate increases.”
The tech-rich Nasdaq led the major indexes, rising 2 per cent to 12,166.27.
The Dow Jones Industrial Average gained 1.1 per cent to 34,029.69, while the broad-based S&P 500 jumped 1.3 per cent to 4,146.22.
The rally came on the eve of a deluge of earnings reports from large banks, including JPMorgan Chase and Wells Fargo, which added 0.4 per cent and 1.2 per cent respectively.
The results will receive heavy scrutiny following the failure last month of Silicon Valley Bank and two other lenders.
Delta Air Lines declined 1.1 per cent after reporting a US$363 million (S$481 million) loss in the first quarter. However, the company noted that it scored record March-quarter revenue in the light of strong underlying demand for flying.
Hasbro advanced 2.6 per cent after it announced executive appointments, including the hiring of Ms Gina Goetter from Harley-Davidson as chief financial officer. Harley-Davidson fell 1.7 per cent. AFP
