Retailers and other consumer companies rose after Federal Reserve Chairman Jerome Powell said disinflation has begun.
Inflation on manufactured goods has already begun to come down, and it's likely to show up in housing services. There's no sign, however, of disinflation in core services, excluding housing, Mr. Powell said. Housing services inflation is likely to roll over once new leases are negotiated, said Mr. Powell.
"It's a good thing that the disinflation we have seen so far has not come at the expense of the labor market," said Mr. Powell, in comments after the policy statement. The central bank will update labor-market and interest-rate estimates at its March meeting.
Home-builder shares continued a recent rally amid hopes that interest rates would soon hit a peak.
Hawaiian Holdings fell sharply after the carrier posted a quarterly loss, reflecting higher fuel prices.
Peloton Interactive shares surged after the maker of exercise bikes said it was turning around its fortunes, as demand remained steady in the latest quarter after a long decline.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
02-01-23 1741ET
