S & P 500 shrugs inflation spikes as returns with the idea of ​​”not fighting the Fed”

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By Yasin Ebrahim – The S & P 500 stayed close to record highs on Thursday as bond hiding was unavoidable due to lower yields. again.

It rose 0.49% and remained close to the daytime high of 4,249.97. Was up 0.22%, or 76 points, up 0.72%.

The Ministry of Labor said Thursday that it rose 0.6% last month after rising 0.9% in April. The rise in consumer prices in May raised the CPI from 4.2% in April to 5%, the highest level since the 1980s.

But the hottest inflation reports of decades have fallen because the Fed has failed to revive fears of tightening policy sooner.

Bond vigilance, which opposed the Federal Reserve’s view of temporary inflation, has curbed bearish bets on bonds over concerns that the Fed may not be as late as it fears.

“[I]”Betting on the Fed tends to be inaccurate,” Allianz ETF strategy officer Johann Gran said in an interview with on Thursday. Then it’s a really slippery slope to get off, as everyone else bets in the same direction. “

There seems to be good reason to refrain from betting against the Fed’s demand for inflation. The economy is open and is bringing consumers back to closed areas such as restaurants and international travel during a pandemic, but this soaring price is not yet a problem as wages have not risen.

“Decisions are made at the consumer level, but it’s important to decide where to spend money, not necessarily more,” Grahn added. “Consumers need to decide, for example, whether to take two flights or one flight for $ 300 per flight. One flight costs $ 450.”

Megacap tech stocks thrived against the backdrop of falling interest rates, keeping the wider market higher.

With the exception of Apple (NASDAQ :), Fab 5 including Google’s parents Alphabet (NASDAQ :), (NASDAQ :), Microsoft (NASDAQ :) and Facebook (NASDAQ :) was green.

However, healthcare stocks are with Bristol Myers Squibb Company (NYSE :) Bio-Rad Laboratories, Inc. (NYSE :).

Bristol Myers Squibb surged by more than 3% after reporting a positive update from its anti-cancer drug Brianji’s late-stage trials.

Energy stocks as oil prices recovered from the fall during the day, following signs that Iran’s nuclear deal negotiations could resume after the U.S. lifted sanctions on some former Iranian officials and energy companies Has risen.

In Mememania news, GameStop (NYSE :) has been updated after a number of updates, including unexpected second-quarter results, the appointment of two former Amazon executives and plans to sell another 5 million shares. It decreased by 25%.

S & P 500 shrugs inflation spikes as returns with the idea of ​​”not fighting the Fed”

Source link S & P 500 shrugs inflation spikes as returns with the idea of ​​”not fighting the Fed”

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