US Stocks Rise Ahead of Inflation News 08/08 11:01
Stocks rose broadly in morning trading on Wall Street Monday as investors
prepare for a busy week of updates on inflation.
NEW YORK (AP) -- Stocks rose broadly in morning trading on Wall Street
Monday as investors prepare for a busy week of updates on inflation.
The S&P 500 rose 0.8% as of 10:26 a.m. Eastern. The Dow Jones Industrial
Average rose 258 points, or 0.8%, to 33,062 and the Nasdaq rose 1.3%.
Small-company stocks outpaced the broader market's gains in a sign that
investors were confident about the economy. The Russell 2000 rose 1.7%.
Retailers and technology stocks were among some of the biggest winners.
Amazon rose 1.2% and Apple rose 1%.
Clean energy companies gained ground following the Senate's approval for
Democrats' big election-year economic package, which includes funding to help
fight climate change. First Solar rose 8.8%.
Bond yields fell. The yield on the 10-year Treasury slipped to 2.78% from
2.83% late Friday.
Investors remain focused on inflation and its impact on businesses and
consumers, along with the Federal Reserve's efforts to fight higher prices. The
central bank has been aggressively raising interest rates to pump the brakes on
economic growth and rein in record-high inflation. The Fed is expected to hike
short-term interest rates by another 0.75 percentage points at its next meeting.
Wall Street is worried that the Fed could hit the brakes too hard on the
economy and bring on a recession. Updates this week on inflation could provide
more clarity on whether the Fed will remain aggressive.
The Labor Department will release its July report for consumer prices on
Wednesday, followed by the July report for prices at the wholesale level on
This week's inflation updates follow reports last week showing the
employment market remains strong. While that's good for the economy, it has
complicated the job of the Fed, which may be forced to continue with aggressive
interest rate hikes intended to cool the economy and soaring inflation.
Investors are still reviewing the latest round of corporate earnings, which
could also provide more details on how hard inflation is hitting consumers and
businesses. Nvidia fell 5.5% after it warned investors that its second-quarter
revenue will fall short of forecasts because of weaker gaming revenue.
Generic drugmaker Viatris rose 8% after beating Wall Street's second-quarter
earnings and revenue forecasts.