Retailers and other consumer companies rallied as traders bought back into cyclical sectors, optimistic that the Federal Reserve would soon slow rate increases.

Toymaker Hasbro projected a 15% drop in revenue in the most recent quarter, citing the impact of inflation.

A drop in job openings was greeted with a sigh of relief, as fears that a wide-open jobs market would spur inflation faded.

"Typically, evidence of 'economic health' is a good thing," said Jim Paulsen, chief investment strategist at money manager The Leuthold Group, in a note to clients.

"Until the Fed blinks, however, and inflation anxiety moderates, news that is ordinarily 'good' will be 'bad' news."

Shares of cruiseline Carnival logged their biggest increase in almost two years, as worries about its pricing strategy and the implications of macroeconomic trends for leisure pursuits faded. Other cruiselines saw stark gains.


Write to Rob Curran at rob.curran@dowjones.com

(END) Dow Jones Newswires

10-04-22 1658ET