Tech giants lead U.S. stock gains; dollar retreats
BNN Bloomberg
Stocks climbed as a report showing the fastest inflation in about four decades was roughly in line with market expectations.
Stocks climbed as a report showing the fastest inflation in about four decades was roughly in line with market expectations.
Technology companies led gains in the S&P 500, while the Nasdaq 100 rose for a third straight session after last week’s selloff. Giants such as Tesla Inc. and Microsoft Corp. rallied at least 2 per cent. Bitcoin advanced. The dollar retreated.
The consumer price index jumped 7 per cent in 2021, matching the median forecast in a Bloomberg survey of economists. The inflation gauge rose 0.5 per cent from November, slightly faster than the 0.4 per cent projection. Market expectations for Federal Reserve tightening in March and 2022 as a whole were largely unchanged after the report.
“Fears about higher and persistent inflation have been well telegraphed in recent months,” said Richard Flynn, managing director at Charles Schwab U.K. “Today’s rise in the rate of inflation falls within investors’ expectations.”
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Dish Network Corp. rallied after a news report that the pay-television provider is in merger talks with DirecTV. Bed Bath & Beyond Inc. jumped, boosted by disclosures of insider purchases of the retailer’s stock made on Jan. 7. Biogen Inc. sank after the U.S. government limited Medicare coverage of the company’s Aduhelm Alzheimer’s disease treatment and similar drugs to patients enrolled in clinical trials.
