The late gains closed out a mostly wobbly day of trading as investors reviewed a mixed report on inflation and await an even more important inflation update on Wednesday. Stocks have been generally gaining ground in May following a dismal April.
The S&P 500 index rose 25.26 points, or 0.5%, to 5,246.68. It is sitting about 0.1% below its record high set in late March. The Dow Jones Industrial Average rose 126.60 points, or 0.3%, to 39,558.11.
The Nasdaq composite, which is heavily influenced by technology stocks, jumped 122.94 points, or 0.8%, to 16,511.18, setting a record high. The tech sector has been a driving force for much of the broader market's gains this year.
Several “meme” stocks, including
An update on inflation showed that prices remain stubbornly high at the wholesale level, before many price changes are passed along to consumers. The latest producer price index showed that inflation rose sharply in April. The report also included a revision lower for the March reading. The report is the first of two big inflation updates this week that are being closely watched by
“Inflation pressures in the
Bond yields edged lower. The yield on the 10-year
The bigger test for markets comes Wednesday, when the
Investors have been curtailing their expectations for the speed and frequency of interest rate cuts this year as inflation remains hotter than expected. Traders are betting on one or two rate cuts this year, according to data from CME Group.
The latest round of earnings reports and company forecasts from retailers also show that consumers are struggling. Lower-income households are under a particularly heavy strain. Retail giant Walmart will report its latest financial results on Thursday, giving investors more insight into consumer spending habits.
Fed Chair
Earnings have been a bright spot for markets, helping to support gains for major indexes in May after a rough April. Companies in the S&P 500 are mostly finished with their latest results, which show a 5.3% gain in earnings overall.
Stocks were mostly higher in
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