Damian J. TRUAZ and ALEX WEIG
NEW YORK (AP) – Shares on Wall Street after lunch trading on Tuesday afternoon changed after a rally of technology companies helped reverse an early decline.
The S&P 500 index rose 0.6% as of 2:29 p.m. in the east. At the beginning of trading, the benchmark index fell by 0.8%. It fell 3.2% the day before, reaching its lowest level in more than a year.
The Dow Jones industrial index has changed little, moving between small gains and losses. The Nasdaq technology grew 1.6%.
Major technology stocks, which have recently fluctuated sharply both up and down, accounted for most of the turn of the S&P 500. Apple rose 2.7% and Microsoft – 2.9%.
Growth in communications and health services has also helped lift the market, overcoming declines in the financial, real estate and other sectors.
Bond yields were mixed. Yields on 10-year Treasury bonds fell to 2.98% from 3.08% on Monday at the end.
Treasury yields are rising, and stocks have been extremely volatile recently as Wall Street adjusts to an aggressive turn in Federal Reserve policy from supporting the economy to fighting inflation. The central bank is raising interest rates from historic lows to fight rising inflation, which is at its highest level in four decades.
The central bank raised the base rate from close to zero, where it had been for most of the coronavirus pandemic. Last week, he revealed that he would double the size of future increases.
Rising prices for raw materials, delivery and labor have impressed the company’s financial results and forecasts. Many companies are raising prices on everything from clothing to food, raising concerns that consumers will end up cutting costs, hurting economic growth.
Russia’s invasion of Ukraine has only heightened concerns about rising inflation. The conflict has pushed already high oil and natural gas prices even higher, while putting more pressure on spending on staple foods such as wheat and corn. U.S. crude oil prices fell 3.4 percent on Tuesday, but rose more than 35 percent in 2022. Wheat prices rose by more than 40% for the year.
Investors are also still considering the latest round of corporate profits with mixed results. Peloton fell 7.9% when a former favorite of pandemic investors reported results that were much weaker than Wall Street expected. Food distributor Sysco rose 8.1% after ahead of analysts’ forecasts.
Migraine treatment developer Biohaven Pharmaceutical rose 69.9% after Pfizer said it would buy the company for $ 11.6 billion. Pfizer already owns part of the company.
More information on Wall Street inflation will be available later this week. The Ministry of Labor on Wednesday will publish a report on consumer prices for April. On Thursday, it will publish a report on producer prices or wholesale prices affecting business, for April.
Veiga reports from Los Angeles.