Stocks rise after 3-day drop due to virus, inflation worries


Stocks rallied on Wall Street on Tuesday morning after three days of losses amid concerns over the spread of the ohmron variant and continued concerns about rising inflation.

The S&P 500 index rose 0.8 percent at 10:18 a.m. in the East. The Dow Jones Industrial Average rose 381 points, or 1.1%, to 35,313, and the Nasdaq rose 0.8%

Technology stocks posted strong gains. Micron Technology was up 8.6% after the chipmaker gave investors an encouraging profit forecast.

Nike, one of 30 stocks in the Dow, rose 5.5% after posting strong quarter results.

Bond yields gained ground. The 10-year Treasury rate rose to 1.48% from 1.42% on Monday.

Banks also rose. Citigroup gained 2.4%.

US crude oil prices rose 2.6%, helping to boost energy stocks. Chevron rose 1.5 percent.

Small company stocks rose more than the rest of the market, a sign that investors are feeling a little more optimistic about the economy. Russell 2000 was up 2.2%.

Earnings follow a few weak days for major indices as traders assess the impact of rapidly rising COVID-19 cases as the omycron variant spreads rapidly. Countries in Europe and Asia have implemented various restrictions aimed at further reducing the spread, causing investors to worry about the impact on the global economy.

The latest wave of coronavirus raises ongoing concerns about the impact of rising inflation on economic growth. Supply chain shortages and higher raw material costs are hitting businesses that pass on higher costs to consumers. US consumer prices rose 6.8% year-on-year in November, marking the fastest rise in inflation in nearly four decades.

Rising inflation also hastened the Federal Reserve’s withdrawal of aid to markets and the economy, putting interest rate hikes on the radar for investors in 2022. especially money from high-value technology stocks.

Copyright © 2021 Washington Times, LLC.


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