Wall St ends up with growth stocks, but inflation fears linger

  • Amazon.com, other megacap stocks gain
  • All eyes on the US CPI report later this week
  • Didi bursts into report on conclusion of China regulatory probe
  • Indices: Dow up 0.1%, S&P 500 up 0.3%, Nasdaq up 0.4%

NEW YORK, June 6 (Reuters) – U.S. stocks closed a choppy session up slightly on Monday, helped by gains from Amazon.com and other mega-cap growth stocks, as lingering concerns over the inflation and interest rates have constrained the market.

Shares of Amazon.com Inc (AMZN.O) rose 2% and were the most positive for the S&P 500 and Nasdaq after the online retailer split its shares 20-to-1.

Shares of Apple Inc (AAPL.O) rose 0.5%. At its annual software developer conference, the tech giant announced among other things that it would integrate its software more deeply into the cars’ basic driving systems. Read more

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Among the sectors, Consumer Discretionary (.SPLRCD) and Communication Services (.SPLRCL) posted the largest gains of the day.

But investors remain focused on inflation and rising interest rates. A US Consumer Price Index report on Friday is expected to show inflation still high and US Treasury yields rose on Monday. Read more

A strong jobs report on Friday dampened hopes of a pause in the Federal Reserve’s aggressive policy-tightening plan to fight inflation.

“There’s been a push-pull in the markets for some time,” said Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago.

The jobs report was proof that “the economy is still in good shape,” he said. But “with inflation running quite high and commodity prices continuing to rise and hit new all-time highs, perhaps that inflation spike is still in that ethereal future.”

The feeling of help has been easing regulatory repression in China and signs in parts of China of a return to more normal activity after the country’s biggest COVID-19 outbreak in two years.

The Dow Jones Industrial Average (.DJI) rose 16.08 points, or 0.05%, to 32,915.78, the S&P 500 (.SPX) gained 12.89 points, or 0.31%, to 4,121.43 and the Nasdaq Composite (.IXIC) added 48.64 points, or 0.4%, to 12,061.37.

Shares of Twitter Inc (TWTR.N) fell 1.5% after billionaire Elon Musk said he could drop his takeover bid if the social media company did not provide spam data and fake accounts. Read more

U.S.-listed shares of Chinese companies rallied after a report that Chinese regulators are concluding investigations into ride-hailing giant Didi Global Inc and two other companies. The KraneShares CSI China Internet ETF (KWEB.P) jumped 4.7% and Didi Global 24.3%. Read more

Advancing issues outnumbered declining ones on the NYSE by a ratio of 1.29 to 1; on the Nasdaq, a ratio of 1.01 to 1 favored the decliners.

The S&P 500 posted 1 new 52-week high and 29 new lows; the Nasdaq Composite recorded 58 new highs and 129 new lows.

Volume on U.S. exchanges was 10.64 billion shares, compared to an average of 12.75 billion for the full session over the past 20 trading days.

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Reporting by Caroline Valetkevitch in New York Additional reporting by Medha Singh, Susan Mathew and Devik Jain in Bengaluru and Tom Westbrook in Singapore Editing by Maju Samuel and Matthew Lewis

Our standards: The Thomson Reuters Trust Principles.

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