Wall Street rises on inflation data but geopolitical tensions cut gains

  • U.S. producer prices rise less than expected
  • Walmart jumps on strong forecast, other retailers gain
  • Indexes up: Dow 0.03%, S&P 0.74%, Nasdaq 1.4%

Nov 15 (Reuters) – The S&P 500 and Nasdaq rose on Tuesday, but pared gains after reports that Russian missiles entered Poland and killed two people, undermining some expectations for cooling inflation. Hopes for a slowdown in the pace of Fed rate hikes have led to the U.S. Federal Reserve.

Two people were killed in an explosion in Przewodow, a village in eastern Poland near the Ukrainian border, firefighters told Reuters.

The Associated Press quoted a senior U.S. intelligence official as saying the blast was caused by a Russian missile crossing into Poland. However, the Pentagon said on Tuesday it could not confirm reports that Russian missiles entered Poland.

Also Read :  China's manufacturing hub Guangzhou partially locked down as Covid outbreak widens

Russia has been attacking cities across Ukraine with missiles in what Kyiv said was the strongest wave of missile strikes since the nearly nine-month war, while Poland’s prime minister called an emergency meeting of the government’s national security and defense committee.

“The drop was triggered by reports of Russian missiles landing in Poland,” said Steve Sosnick, chief strategist at Interactive Brokers. “It could turn into something worse, but right now the market is nervous, not panicked.”

Stocks retreated around midday after jumping higher earlier in the session after data showed U.S. producer prices rose less than expected.

Also Read :  St. Louis school shooting: After a warning on the intercom, a gunman with an AR-15-style rifle killed a teacher and a student while others jumped out windows

“You’re still going to see volatility across the market,” said Matthew Miskin, co-chief investment strategist at John Hancock Investment Management.

“We’re not out of the woods yet because it’s related to the Russia-Ukraine war. We do get better and better inflation numbers, but there are still growth concerns.”

The Dow Jones Industrial Average (.DJI) rose 9.73 points, or 0.03%, to 33,546.43, the S&P 500 (.SPX) rose 29.4 points, or 0.74%, to 3,986.65 and the Nasdaq Composite (.IXIC) added 156.76 points, or 1.4 %, to 11,352.98.

Tuesday’s inflation report showed producer prices rose 8% in the 12 months through October, compared with expectations for a gain of 8.3%.

Also Read :  Putin insists U.S. respect 'multipolar' world and tell Kyiv to seek peace

Tuesday’s stock market rally built on a rally that began late last week on the back of a weaker-than-expected consumer price report.

Shares of top U.S. retailer Walmart Inc ( WMT.N ) rose 7 percent after the top U.S. retailer raised its annual sales and profit forecast, benefiting from steady demand for groceries despite rising prices.

Shares of other retailers, including Target Corp (TGT.N) and Costco (COST.O), also followed Walmart’s report higher.

Reporting by Lewis Krauskopf and Carolina Mandl in New York, Shubham Batra, Sruthi Shankar, Amruta Khandekar and Ankika Biswas; Additional reporting by Devik Jain; Editing by Shounak Dasgupta and Arun Koyyur

Our Standards: The Thomson Reuters Trust Principles.


Leave a Reply

Your email address will not be published. Required fields are marked *

Related Articles

Back to top button