US stock indices advance as inflation rises
By Ishika Dangayach on Jan 12, 2022 | 04:32 AM IST
• S&P 500 rose 0.26 %
• Nasdaq composite index gained 0.24 %
• Dow Jones industrial average gained 0.13 %
US stock indices edged up on Wednesday even after inflation was at its highest level since 1982 in December as well as fears over interest rate hikes.
In Monday trade, the S&P 500 rose 0.26 %. The Nasdaq Composite Index gained 0.24 %, while the Dow Jones Industrial Average gained 0.13 %.
The consumer price index rose 0.5 % in December after rising 0.8 % in November, according to the Labor Department on Wednesday.
The CPI increased by 7.0 % in December compared to the same month the previous year. This was the largest year-on-year gain since June 1982, and it came on the heels of a 6.8 % increase in November.
Meanwhile, in congressional testimony on Tuesday, Federal Reserve Board Chairman Jerome Powell said high inflation is a serious threat to a healthy economic recovery, and the central bank is poised to raise interest rates since the economy no longer requires emergency assistance.
In Heavyweight technology stocks, Apple Inc surged 0.49 %, Microsoft Corp gained 1.56 % and Alphabet Inc advanced by 1,66 % while Meta Platforms Inc plummeted 0.51 %.
In the bank sector, Goldman Sachs Group Inc. and Morgan Stanley dropped 2.45 % and 2.41 % respectively while JPMorgan Chase & Co gained 0.15 % and Wells Fargo & Co surged 0.018 %.
Biogen Inc fell over 7.94 on Wednesday after the U.S. government announced restricted coverage of a controversial Alzheimer’s drug, Aduhelm, approved last year.
While Brent crude, the global oil benchmark climbed 1.45 % to $84.93 a barrel. WTI Crude oil prices surged 1.96 % to $82.81 per barrel.
Overseas, the Stoxx Europe 600 index climbed 0.64 %, Shanghai Composite Index surged 0.84 %, Nikkei 225 advanced 1.92 % and Hang Seng Index soared 2.79 %.
Picture Credits: ET