Wall St rises again on hopes of ebbing inflation; S&P 500, Nasdaq climb over 1%
Premium- The broad-based S&P 500 gained 1.1 percent to 3,887.07, while the tech-rich Nasdaq Composite Index advanced 1.4 percent to 11,516.19
US stocks rose on Thursday as fears about inflation and the pace of monetary tightening faded, while commodities got a boost from China’s $220 billion stimulus plan.
About few minutes into trading, the Dow Jones Industrial Average was up 0.9 percent to 31,321.94.
The broad-based S&P 500 gained 1.1 percent to 3,887.07, while the tech-rich Nasdaq Composite Index advanced 1.4 percent to 11,516.19.
The S&P 500 and Nasdaq have risen the last three days.
Markets are looking ahead to Friday's all-important government jobs report, expected to show job growth slowing, with the US economy adding 250,000 positions in June and the unemployment rate holding steady at 3.6 percent.
The US two- and 10-year yield curve remained inverted for a third day. US jobless claims rose last week, signaling that the strength in the labor market is moderating.
The prices of oil, copper and other key commodities have tumbled from recent peaks, a drop tied to the weakening growth outlook.
The retreat in prices for key raw materials could alter the calculus of major central banks that have moved aggressively to raise interest rates to tamp down inflation.
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Art Hogan of National Securities also pointed to relief in wage pressure and elevated product inventories at retail giants Target and Walmart as factors blunting pricing pressure.
"The bottom line is that inflation may stay elevated for another month or two," Hogan said in a market note. "Still, given the above trends, the probability is rising that inflation going into the second half of this year could come down faster than the market currently expects."