© Reuters. FILE PHOTO: Shares are seen inside a trading post on the trading floor as preparations are made for the return to trading on the NYSE in New York.
By Medha Singh and Shashank Nayar
(Reuters) – Major US stock indices will open higher on Wednesday after data show underlying consumer prices remain lower in February, easing concerns about a rise in inflation while the economic recovery gains momentum.
It tapped lower as the data showed that core consumer price index inflation rose less than expected as demand for services, including air travel, gradually picked up.
The focus is on an auction of 30 – year – old US debt later in the day for clues as to where the yields in the recently volatile market could lead.
“The expectation that inflation will rise in the short term will remain stagnant due to the large public lending, but the tame inflation data that came today will certainly cause some optimism among investors,” Arthur Weise said. , chief investment officer of Kingsland Growth Advisors in New York.
At 8:52 a.m. ET, Dow E-minis rose 176 points, or 0.55%, E-minis rose 15.5 points, or 0.4%, and E-minis rose 75.5 points, or 0, 59% increased.
Accelerated vaccine deployment and a new solid fiscal stimulus on the horizon have raised bets on higher inflation, causing a sharp rise in treasury yields that knocked the technology Nasdaq down about 7% from its February 12 record .
The Nasdaq on Tuesday recorded its best one-day percentage jump in four months, aided by a nearly 20% jump in Tesla (NASDAQ 🙂 Inc’s shares, as investors gained momentum that was recently hit by higher returns.
Apple Inc (NASDAQ :), Amazon.com Inc (NASDAQ 🙂 and Microsoft Corp. (NASDAQ 🙂 slightly increased profits from the previous session, while economy-linked industrial and banking stocks, including Boeing (NYSE 🙂 Co, Morgan Stanley (NYSE 🙂 and JPMorgan Chase & Co (NYSE 🙂 also added between 0.8% and 1.2%.
That part of a $ 1.9 billion relief grant, which is on track to be signed into law later this week, is about to hit the stock market and could boost GameStop (NYSE 🙂 and other stocks popular with retail investors. in forums on social media online.
Shares in GameStop rose another 12%, putting the video game retailer on track for its longest range of daily profits in six months and expanding a rally that has already doubled the company’s market value.
Among other “meme” stocks, Koss Corp and AMC Entertainment (NYSE 🙂 rose 44% and 7.4%, respectively.
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