The US stocks extended gains on Wednesday, 10 March 2021, with the Dow, S&P 500, and the broader Nasdaq ended higher, as the rotation into cyclical and value stocks resumed on eased fears of a rapid rise in interest rates after lower-than-expected inflation reading.
At the close of trade, the Dow Jones Industrial Average index advanced 464.28 points, or 1.46%, to 32,297.02. The S&P500 index added 23.37 points, or 0.6%, to 3,898.81. The tech-heavy Nasdaq Composite Index fell 5.00 points, or 0.04%, to 13,068.83.
The Wall Street commenced trading with firm footing as the rotation into value stocks resumed following a lower-than-expected inflation report. The yield on the 10-year Treasury note fell toward the unchanged line following the release of the inflation data after moving modestly higher earlier this morning. The Labor Department said its consumer price index climbed by 0.4% in February after rising by 0.3% in January.
On an annual basis, consumer price growth accelerated to 1.7% in February from 1.4% in January but core price growth slowed to 1.3% from 1.4%.
Meanwhile, buying interest may also have been generated in reaction to reports indicating the U. S. plans to buy 100 million additional doses of Johnson & Johnson's (JNJ) Covid-19 vaccine.
ECONOMIC NEWS: US Consumer Price Index Creeps Up By 0.4% In February- US consumer price index climbed by 0.4 percent in February after rising by 0.3 percent in January, according to a report released by the Labor Department on Wednesday. On an annual basis, consumer price growth accelerated to 1.7 percent in February from 1.4 percent in January but core price growth slowed to 1.3 percent from 1.4 percent.
Gasoline prices led the way higher once again, surging up by 6.4 percent in February following a 7.4 percent spike in January. Excluding food and energy prices, core consumer prices inched up by 0.1 percent in February after coming in unchanged for two straight months. The uptick in core prices came as higher prices for shelter, recreation, medical care, and motor vehicle insurance were partly offset by lower prices for airline fares, used cars and trucks, and apparel.
The dollar nursed losses against most currencies on Thursday after benign data on U. S. consumer price data and a decline in Treasury yields led some investors to trim bets on a rapid acceleration in inflation.
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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)
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