Tech Up As Inflation Fears Moderate -- Tech Roundup

Shares of technology companies rallied, rebounding from nine-month lows as inflation fears moderated somewhat.

The producer price index showed a slowdown in wholesale inflation in February from January levels, easing fears that the U.S. economy had entered an inflation spiral.

The yields on the 10-year and two-year Treasurys pulled back from multiyear highs in the wake of the data, easing pressure on high-risk stocks and other assets. The stocks and assets that had led markets during the years of support from the Federal Reserve, including electric-vehicle maker Tesla, videogame chain GameStop, and bitcoin, all rallied, recouping some losses from a major 2022 selloff.

"This is just the aftermath of a lot of the reopening postpandemic, and stimulus payments," said Eric Marshall, president of mutual-fund firm Hodges Capital. "There are consequences to some of the actions we took to help support the economy and some of the stimulus payments that we did ... and that's inflation."

Chip giant Intel said it would invest $36 billion in chip production and research across Europe, including a new chip-making complex in Magdeburg, Germany, to keep pace with surging demand for semiconductors.

Flexible-office operator IWG is investing around $350 million into a venture with the Instant Group, which runs an online listing site for office space, pushing towards the creation of an "Airbnb" for short-term office rentals.

 Write to Rob Curran at [e-mail] 

(END) Dow Jones Newswires

03-15-22 1724ET