US Stocks Rise Ahead of Inflation News 08/08 11:01

US Stocks Rise Ahead of Inflation News 08/08 11:01

   Stocks rose broadly in morning trading on Wall Street Monday as investors 
prepare for a busy week of updates on inflation.

   NEW YORK (AP) -- Stocks rose broadly in morning trading on Wall Street 
Monday as investors prepare for a busy week of updates on inflation.

   The S&P 500 rose 0.8% as of 10:26 a.m. Eastern. The Dow Jones Industrial 
Average rose 258 points, or 0.8%, to 33,062 and the Nasdaq rose 1.3%.

   Small-company stocks outpaced the broader market's gains in a sign that 
investors were confident about the economy. The Russell 2000 rose 1.7%.

   Retailers and technology stocks were among some of the biggest winners. 
Amazon rose 1.2% and Apple rose 1%.

   Clean energy companies gained ground following the Senate's approval for 
Democrats' big election-year economic package, which includes funding to help 
fight climate change. First Solar rose 8.8%.

   Bond yields fell. The yield on the 10-year Treasury slipped to 2.78% from 
2.83% late Friday.

   Investors remain focused on inflation and its impact on businesses and 
consumers, along with the Federal Reserve's efforts to fight higher prices. The 
central bank has been aggressively raising interest rates to pump the brakes on 
economic growth and rein in record-high inflation. The Fed is expected to hike 
short-term interest rates by another 0.75 percentage points at its next meeting.

   Wall Street is worried that the Fed could hit the brakes too hard on the 
economy and bring on a recession. Updates this week on inflation could provide 
more clarity on whether the Fed will remain aggressive.

   The Labor Department will release its July report for consumer prices on 
Wednesday, followed by the July report for prices at the wholesale level on 
Thursday.

   This week's inflation updates follow reports last week showing the 
employment market remains strong. While that's good for the economy, it has 
complicated the job of the Fed, which may be forced to continue with aggressive 
interest rate hikes intended to cool the economy and soaring inflation.

   Investors are still reviewing the latest round of corporate earnings, which 
could also provide more details on how hard inflation is hitting consumers and 
businesses. Nvidia fell 5.5% after it warned investors that its second-quarter 
revenue will fall short of forecasts because of weaker gaming revenue.

   Generic drugmaker Viatris rose 8% after beating Wall Street's second-quarter 
earnings and revenue forecasts.

    

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