Stocks closed broadly higher on
THIS IS A BREAKING NEWS UPDATE. AP’s earlier story follows below.
Stocks rose broadly in afternoon trading on
The S&P 500 rose 1.5% as of
Technology and communications stocks were among the biggest gainers.
Companies that rely on spending by consumers, including retailers and travel-related businesses, also rose. Home Depot rose 0.9% and
Bond yields fell. The yield on the 10-year
Investors are busy reviewing the latest corporate earnings as they try to determine how different industries are dealing with persistent supply chain problems. That is one of the factors pushing inflation higher and making operations more costly for companies while making products more expensive for consumers.
“Overall, companies have found that increasing prices have been more acceptable to their customers than in the past,” said
An unexpectedly smaller rise in prices could be seen as a signal that inflation might be easing and could support markets, though a bigger increase could weigh on stocks.
“People are trying to get in position to where they want to be before this number is released tomorrow," Wren said.
Persistently rising inflation could increase pressure on the
Investors expect the Fed to raise rates at least four times this year, starting next month. They remain concerned that the Fed may need to raise rates more often than that if inflation pressure remains high. As a result, markets have become more volatile as investors shift money around to prepare for an investing environment with higher interest rates following an extended period of ultra-low interest rate policy throughout the pandemic.
Drugstore chain CVS fell 5.3% for the biggest decline in the S&P 500 after giving investors a discouraging earnings forecast.
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