US stocks surged on Wednesday with the Dow Jones hitting a record high, with data showing underlying consumer prices remained lukewarm in February, allaying concerns about spike in inflation.
The 10-year US Treasury yield slipped from its session highs, with data showing the consumer staples index, which excludes volatile items such as food and energy, rose less than expected last month.
The focus is on an auction of US 10-year and 30-year debt later today to get clues as to where returns could go in a recently volatile market.
“Expectations of a rise in inflation in the near term will remain due to huge government borrowing, but the tame inflation data that has come in today would certainly stimulate some optimism among investors,” said Arthur Weise. , Director of Investments at Kingsland Growth Advisors. New York.
Accelerating vaccine deployments and a new round of fiscal stimulus on the horizon have raised bets on higher inflation, triggering a sharp rise in Treasury yields that knocked the high-tech Nasdaq down. around 7% from its closing record on Feb.12.
The United States plans to double its order of the single-injection vaccine against the Johnson & Johnson coronavirus, procuring an additional 100 million doses, a White House official said on Wednesday.
The Nasdaq extended its gains after posting its best percentage increase in one day in four months on Tuesday, helped by an almost 20% rise in shares of Tesla Inc. as investors rallied stocks that had recently taken a beating due to higher yields.
Amazon.com Inc, Microsoft Corp and Tesla increased their gains 0.8% and 4% from the previous session, while economy-related industrial and financial stocks jumped more than 1% each.
Part of $ 1.9 trillion in relief aid, which is set to be enacted later this week, is about to end up on the stock market and could give GameStop a boost and other popular actions among retail investors active in online social media. forums.
GameStop shares jumped another 19%, putting the video game retailer on track for its longest streak of daily gains in six months and extending a rally that has already doubled the market value of the company.
Among other “meme” stocks, Koss Corp and AMC Entertainment climbed 52% and 14%.
Rising issues outnumbered declines by a 4.2-to-1 ratio on the NYSE and a 4.1-to-1 ratio on the Nasdaq.
The S&P 500 posted 20 new 52-week highs and no new lows, while the Nasdaq recorded 174 new highs and 10 new lows.
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