NEW YORK: Wall Street’s major indexes climbed on Tuesday, following another milder-than-expected US inflation report, reported Xinhua.
The Dow Jones Industrial Average rose 56.22 points, or 0.17 per cent, to 33,592.92. The S&P 500 increased 34.48 points, or 0.87 per cent, to 3,991.73. The Nasdaq Composite Index was up 162.19 points, or 1.45 per cent, to 11,358.41.
Nine of the 11 primary S&P 500 sectors ended in the green, with communication services and technology up 1.78 per cent and 1.24 per cent, respectively, outpacing the rest. The materials and the health care groups, however, suffered modest losses.
The US Labour Department reported Tuesday that the country’s producer price index (PPI), a measure of wholesale inflation, rose 0.2 per cent in October, below the 0.4 per cent consensus. On a year-over-year basis, PPI rose 8 per cent compared to an 8.4 per cent increase in September.
The report came after data released last week showed a smaller-than-expected increase in the October US consumer price index.
While the moderation in the pace of inflation for October was a welcome development, experts have warned against extrapolating too much from a single month.
Fed Governor Christopher Waller on Sunday described the softer-than-expected US consumer inflation release as “just one data point,“ and said that markets have got “way out in front.”
“We believe the Fed will want to see several consecutive months of tamer inflation before considering a pivot to a more dovish stance,“ UBS analysts said Tuesday in a note.
“In addition, the Fed needs to see signs of a cooling labour market. Yet recent data still points to strong job growth, low unemployment, and fast-rising wages,“ they said.
Meanwhile, US-listed Chinese companies traded higher on Tuesday with all the top 10 stocks by weight in the S&P US Listed China 50 index ending the day on an upbeat note.
Shares of Alibaba Group Holding and NetEase spiked 11.17 per cent and 9.75 per cent, respectively, leading the advance in the top 10 stocks.
Shares of Baidu and Pinduoduo surged 9.02 per cent and 8.53 per cent, respectively, also among the best performers.
The Cboe Volatility Index, widely considered as the best fear gauge in the stock market, rose 3.41 per cent to 24.54.
As of Monday, the S&P US Listed China 50 index, which is designed to track the performance of the 50 largest Chinese companies listed on US exchanges by total market cap, stood at 2,232.34, marking an 18.81-per cent gain for the month-to-date returns and a 25.05-per cent loss for the year-to-date returns.-Bernama
