May 20, 2022

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S&P 500 and Nasdaq close higher in choppy session as inflation data looms

S&P 500 and Nasdaq close higher in choppy session as inflation data looms

  • All eyes are on US CPI data on Wednesday
  • Peloton falls as CEO says business is ‘undercapitalised’
  • Indices: Dow Jones down 0.3%, Standard & Poor’s 500 up 0.3%, Nasdaq down 1%.

NEW YORK (Reuters) – The S&P 500 and Nasdaq closed higher on Tuesday, with big-growth stocks surging after the previous day’s sell-off as Treasury yields tumbled.

Bank shares fell along with the returns. The benchmark 10-year bond yield has fallen from a three-year high to less than 3%.

The Dow Jones also finished lower, and the day was choppy, with major indexes moving between gains and losses as investors were nervous ahead of Wednesday’s release of US CPI data and producer price data on Thursday.

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Investors will be looking for signs that inflation has peaked. Read more

Concerns that the US Federal Reserve may have to move more aggressively to curb inflation led to the recent market sell-off. A host of other concerns added to the pressure.

It’s just fear-based selling,” said Jake Dollarhyde, CEO of Longbow Asset Management in Tulsa, Oklahoma.

“The Fed can’t just raise interest rates to stave off inflation, because we’ve seen that before,” he said. Instead, investors were worried about everything from rates and inflation to the war in Ukraine, supply chain problems and China’s shutdown of the COVID-19 virus.

Shares of Apple Inc (AAPL.O) It rose 1.6% and gave the S&P 500 and Nasdaq the biggest support.

Dow Jones Industrial Average (.DJI) The index fell 84.96 points, or 0.26%, to 32,160.74 points, and the Standard & Poor’s 500 (.SPX) It rose 9.81 points, or 0.25%, to 4001.05 points, and the Nasdaq Composite (nineteenth) It added 114.42 points, or 0.98%, to 11,737.67 points.

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A trader works at the New York Stock Exchange (NYSE) in New York City, US, May 9, 2022. REUTERS/Brendan McDermid

Technology and growth stocks, whose valuations depend more on future cash flows, were among the hardest hit in the recent sell-off. The Nasdaq is down about 25% for the year so far.

S&P 500 . Technology (.SPLRCT) It rose 1.6% on the day and led the gains in the S&P 500 sector. The S&P 500 Growth Index (.IGX) The S&P 500 rose 0.9%. (.IVX) It was down 0.4%.

Investors digested comments from Cleveland Fed President Loretta Meester, who said the US economy will suffer turmoil from the Fed’s efforts to cut inflation more than three times above its target and recent stock market volatility won’t deter policymakers. Read more

US President Joe Biden, in a speech on Tuesday addressing rising inflation, said he is considering eliminating Trump-era tariffs on China as a way to lower US commodity prices. Read more

Among today’s gainers, Pfizer Inc (PFE.N) The company’s stock rose 1.7 percent after it said it would pay $11.6 billion to buy Beohaven Pharmaceutical Holdings (BHVN.N). Read more Biohaven stock jumped 68.4%.

On the downside, Peloton Interactive Inc (PTON.O) It fell 8.7% as the fitness equipment maker warned that the company was “undercapitalised” after reporting a 23.6% decline in quarterly revenue. Read more

Volume on US exchanges was 15.45 billion shares compared to an average of 12.55 billion for the full session over the last 20 trading days.

Low issues outnumbered advanced issues on the New York Stock Exchange by 1.36 to 1; On the Nasdaq, the ratio was 1.34 to 1 in favor of declining stocks.

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S&P 500 set new 52-week high and 63 new low; The Nasdaq recorded 19 new highs and 1066 new lows.

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Reporting by Caroline Valitkevich. Additional reporting by Amruta Khandekar and Devik Jain in Bengaluru; Editing by Sriraj Kalovila, Shunak Dasgupta and Aurora Ellis

Our criteria: Thomson Reuters Trust Principles.