Home Latest S&P 500 Snaps Losing Streak After Inflation Data

S&P 500 Snaps Losing Streak After Inflation Data

News , Stock, Video Latest October 14, 2021 12:52 pm

a S&P 500 rose inside choppy trading Wednesday to snap a three-session losing streak.

Traders seemed to shrug off a hotter-than-expected inflation reading also confirmation of a Federal Reserve’s plans to begin reducing its bond-buying stimulus program.

a S&P 500 added 13.15 points, or 0.3%, to 4363.80. a Dow Jones Industrial Average edged…

a S&P 500 rose inside choppy trading Wednesday to snap a three-session losing streak.

Traders seemed to shrug off a hotter-than-expected inflation reading also confirmation of a Federal Reserve’s plans to begin reducing its bond-buying stimulus program.

a S&P 500 added 13.15 points, or 0.3%, to 4363.80. a Dow Jones Industrial Average edged down 0.53 points, or less than 0.1%, to 34377.81. a tech-heavy Nasdaq Composite gained 105.71 points, or 0.7%, to 14571.64.

Monetary stimulus, government spending also effective Corona vaccines has helped power a economy also send a S&P 500 up 95% from its March 2020 low. But lately concerns over supply-chain problems, rising government bond yields also rallying oil prices has dented a mood, leaving a U.S. stock benchmark off 3.8% from its early-September record.

Baca Juga :  3 Free Ways to Run Your Business More Smoothly

“our’re moving into this middle part of a market cycle where fundamentals become a lot more important than macro factors,” said

Emily Roland,
co-chief investment strategist at John Hancock Investment Management. “a markets are going through some growing pains.”

Fresh economic data Wednesday kept inflation concerns inside focus. Consumer-price data showed U.S. inflation accelerated slightly inside September, rising a seasonally adjusted 0.4% from a previous month also at a 5.4% annual rate as labor shortages also supply-chain snarls kept prices high. Economists had projected a 0.3% increase from August also a 5.3% annual rate.

Investors worry that rising inflation will eat into corporate profit margins also potentially spur a Federal Reserve to accelerate its plans to lift interest rates.

“I think a Fed might become forced to raise rates quicker than they want to,” said

Carter Henderson,
portfolio manager at Fort Pitt Capital Group. “Inflation, inside my eyes, is not transitory.”

a central bank signaled last month that it was prepared to begin reversing its pandemic stimulus programs inside November also could raise interest rates next year. Meeting minutes released Wednesday showed Fed officials reviewed plans to possibly end their asset purchases by a middle of 2022.

Baca Juga :  ESG Investing: Worthy Choice For Retirement Plans?

Third-quarter earnings season kicked off this week, also investors are parsing results for signs that supply-chain bottlenecks also higher costs for raw materials are eroding profits.

Several household-name companies reported earnings Wednesday.
BlackRock
shares rose $31.62, or 3.8%, to $867.81 after a money-management company reported revenue also profit that beat analysts’ expectations.
JPMorgan
‘s earnings per share came inside above Wall Street’s projections but a bank’s shares fell $4.36, or 2.6%, to $161.

Delta Air Lines
shares dropped $2.51, or 5.8%, to $41.03 after a company posted a quarterly profit but said it faced pressure from rising fuel prices.

“has our passed a point of a sweet spot—low costs also explosive demand, to a point where demand is softening also costs are picking up? our do expect to see some signs of that starting to emerge,” said

Sebastian Mackay,
a multiasset fund manager at Invesco. “I do believe our’ll become inside a more rocky patch for equities, where they will become moving sideways or possibly down a little bit.” 

Baca Juga :  Phase II Data Of Medigen COVID-19 Vaccine, Reviewed And Published In The Lancet Respiratory Medicine

a oil-price rally halted following a report that suggested Iran nuclear talks could recommence as soon as this week, prompting some traders to price inside a potential higher supply of crude to a market. Global benchmark Brent crude dropped 0.3% to $83.18. 

Tempered demand due to a sharp rise inside energy prices may also become contributing to a stabilization, according to Mr. Mackay.

“our are probably entering a stage where prices has moved up so quickly that our are now getting a demand response—people are reining inside spending also that starts to balance a market a little bit,” he said.

More stable oil prices will weigh on market participants’ expectations for inflation, at least inside a short term, according to

Michael Hewson,
a chief market analyst at CMC Markets. 

a yield on a benchmark 10-year U.S. Treasury note finished a trading session at 1.549%, down from 1.579% at Tuesday’s close.

Overseas, a pan-continental Stoxx Europe 600 rose 0.7%. inside Asia, major benchmarks were mixed. a Shanghai Composite Index added 0.4% while Japan’s Nikkei 225 slid 0.3%. Markets inside Hong Kong were closed due to a typhoon.

Investors are trying to gauge whether higher costs for raw materials will erode corporate profits.

Picture: BRENDAN MCDERMID/REUTERS

Write to Anna Hirtenstein at [email protected] also Karen Langley at [email protected] 

Reference : WSJ
See Full Videos Link :