Wall St climbs on growth stocks ahead of inflation data

Almost all the major S&P sectoral indices were trading in the green. Amazon, Com Inc and Tesla Inc, up 4.0% and 3.8% respectively, and among the top gains in the benchmark S&P 500 index.

Gains in both stocks lifted the consumer discretionary sector nearly 2%. Only healthcare stocks declined marginally.

Markets face renewed optimism in 2023 amid hopes the economy will rebound we The economy could pave the way for a less aggressive stance from the US central bank.

The much-anticipated inflation report from the Labor Department on Thursday is expected to show US consumer prices rose 6.5% year-over-year from 7.1% a month earlier, while core inflation rose 5.7% in December , which was 6%. november.

While further evidence of a reduction in price pressures may fuel hopes of the Fed stopping its rate hike cycle soon, recent comments from some policymakers have supported the view that the Fed needs to raise interest rates to fight inflation. Need to be aggressive in scaling up.

“(Investors) think inflation is being controlled and there is more risk of not being in the market than being in the market,” said Christopher Grisanti, chief equity strategist at MAI Capital Management in Cleveland.

“If there are good inflation numbers, February could be the last hike, or they (the Fed) might even stop.”

Money market participants see a 77% chance that the Fed will raise the benchmark rate by 25 basis points to 4.50%-4.75% in February, and see rates reaching 4.92% by June.

Wall Street’s main indexes edged higher on Tuesday as Fed Chairman Jerome Powell refrained from commenting on the outlook for upcoming interest rates. inflation dataBut said the Fed’s independence was necessary to fight inflation.

Earnings season for S&P 500 companies begins this week, with Wall Street’s biggest banks expected to report lower quarterly profits amid recession risks as monetary policy tightens.

At 10:05 a.m., the Dow Jones Industrial Average was up 100.21 points, or 0.30%, at 33,804.31, the S&P 500 was up 19.72 points, or 0.50%, at 3,938.97, and the Nasdaq Composite was up 69.58 points, or 0.65. %, at 10,812.21.

Home goods retailer Bed Bath & Beyond Inc jumped 31.2% in the previous session despite quarterly results missing profit as retail investors speculated it could be a potential takeover target and short-sellers offloaded bets. .

Shares of airlines such as American Airlines Group Inc and Spirit Airlines Inc reversed premarket losses to rise between 0.8% and 2.5% as US flights gradually resumed departures and as the Federal Aviation Administration stepped in to fix the system. A ground stop was called off after a scuffle. Overnight outage.

The number of decliners who advanced rose to a 3.99-to-1 ratio on the NYSE and a 2.24-to-1 ratio on the Nasdaq.

The S&P index recorded nine new 52-week highs and no new lows, while the Nasdaq recorded 43 new highs and 11 new lows.

The text of this story is published from a wire agency feed without any modification.