Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Wall Street ends sharply higher as investors eye inflation data

Published 02/13/2023, 07:19 AM
Updated 02/13/2023, 06:15 PM
© Reuters. FILE PHOTO: Traders work on the trading floor at the New York Stock Exchange (NYSE) in New York City, U.S., January 27, 2023. REUTERS/Andrew Kelly

(Updates following end of session with price moves)

By Noel Randewich

(Reuters) - Wall Street closed sharply higher on Monday as investors awaited inflation data likely to hint at the path of the Federal Reserve's future interest rate hikes, while Meta Platforms gained after a report that the Facebook (NASDAQ:META) parent was planning fresh layoffs.

Meta jumped about 3% after the Financial Times reported on Sunday that the company was preparing to announce a new round of job cuts, adding to layoffs last November.

Microsoft (NASDAQ:MSFT) rose more than 3%, Nvidia (NASDAQ:NVDA) gained 2.5%, and Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) each rose over 1%. Along with Meta, those tech-related heavyweights contributed more than any other stocks to the S&P 500's gains during a trading session that saw light volume.

Helping lift Microsoft, Stifel raised its price target on the software company and said it is clearly looking to upend Alphabet (NASDAQ:GOOGL)'s Google search dominance through its integration with ChatGPT.

Investors are laser-focused on January inflation data due on Tuesday to reassess their bets on the central bank's monetary policy path.

Wall Street's main indexes lost ground last week after Federal Reserve Chair Jerome Powell warned that interest rates may need to move higher than expected in the central bank's battle against inflation.

"Today is just a natural reaction in the opposite direction after we've seen very heavy selling pressure," said Keith Buchanan, portfolio manager at GLOBALT Investments in Atlanta.

Ten of the 11 S&P 500 sector indexes rose, led by information technology, up 1.77%, followed by a 1.46% gain in consumer discretionary. The energy index dipped 0.6%.

The S&P 500 climbed 1.15% to end the session at 4,137.32 points.

The Nasdaq gained 1.48% to 11,891.79 points, while the Dow Jones Industrial Average rose 1.11% to 34,246.13 points.

However, volume on U.S. exchanges was relatively light, with 9.5 billion shares traded, compared to an average of 11.9 billion shares over the previous 20 sessions.

So far in this year, the S&P 500 has gained about 8%, and the index remains down about 14% from its record high close in January 2022.

Fidelity National Information Services Inc plunged 12.5% following the banking and payments processing conglomerate's decision to spin off its merchant payments business.

Coca-Cola (NYSE:KO) rose 1.6% ahead of its quarterly report due out early on Tuesday.

As U.S. quarterly earnings reports wind down, 69% of the S&P 500 firms that have reported results so far have exceeded profit expectations, according to Refinitiv data. Analysts expect December-quarter earnings to have fallen nearly 3% from a year earlier.

© Reuters. FILE PHOTO: Traders work on the trading floor at the New York Stock Exchange (NYSE) in New York City, U.S., January 27, 2023. REUTERS/Andrew Kelly

Across the U.S. stock market, advancing stocks outnumbered falling ones by a 2.5-to-one ratio.

The S&P 500 posted four new highs and no new lows; the Nasdaq recorded 80 new highs and 59 new lows.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.