New York [US], November 16:Wall Street's major indexes climbed on Tuesday, following another milder than expected U.S. inflation report.
The Dow Jones Industrial Average rose 56.22 points, or 0.17 percent, to 33,592.92. The S&P 500 increased 34.48 points, or 0.87 percent, to 3,991.73. The Nasdaq Composite Index was up 162.19 points, or 1.45 percent, to 11,358.41.
Nine of the 11 primary S&P 500 sectors ended in green, with communication services and technology up 1.78 percent and 1.24 percent, respectively, outpacing the rest. The materials and the health care groups, however, suffered modest losses.
The U.S. Labor Department reported Tuesday that the country's producer price index (PPI), a measure of wholesale inflation, rose 0.2 percent in October, below the 0.4 percent consensus. On a year-over-year basis, PPI rose 8 percent compared to an 8.4 percent increase in September.
The report came after data released last week showing a smaller-than-expected increase in October U.S. consumer price index.
While the moderation in the pace of inflation for October was a welcome development, experts have warned against extrapolating too much from a single month.
Fed Governor Christopher Waller on Sunday described the softer-than-expect U.S. consumer inflation release as "just one data point," and said that markets have got "way out in front."
"We believe the Fed will want to see several consecutive months of tamer inflation before considering a pivot to a more dovish stance," UBS analysts said Tuesday in a note.
"In addition, the Fed needs to see signs of a cooling labor market. Yet recent data still points to strong job growth, low unemployment, and fast-rising wages," they said.
Source: Xinhua