Ten of the 11 major S&P sectors were higher in morning trading. Energy stocks rose 3.4% as crude prices gained more than 5% on supply concerns.
The financial sector added 1.1% and banks advanced 1.5% in line with the yield on 10-year Treasury bonds, which again exceeded 3%.
However, the prospect of rising interest rates weighed on large-cap stocks such as Amazon.com, Microsoft Corp, Apple Inc, Meta Platforms and Tesla Inc, which posted modest losses.
The Labor Department report showed that The Consumer Price Index rose 0.3% last month, its smallest gain since August, but still above economists’ forecast for a 0.2% rise..
“The data shows that inflation and price increases are probably not peaking,” said Greg Bassuk of AXS Investments in Port Chester, New York. “With supply chain concerns and potentially more aggressive policy from the Federal Reserve, the likelihood of not just a US recession, but a global one, is definitely going to weigh on markets.”
The war in Ukraine, coupled with the latest coronavirus lockdowns in China, have deepened investor concern over faltering global economic growth.
Source: Ambito
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