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Dow hits record high as inflation fears recede after data

EconomyMar 10, 2021 10:41AM ET
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© Reuters. FILE PHOTO: Dividers are seen inside a trading post on the trading floor as preparations are made for the return to trading at the NYSE in New York

By Medha Singh and Shashank Nayar

(Reuters) - U.S. stocks jumped on Wednesday with the Dow hitting a record high, as data showed underlying consumer prices remained tepid in February, easing concerns about a spike in inflation.

The 10-year U.S. Treasury yield slipped from its session highs as data showed core consumer prices index, which excludes volatile items such as food and energy, rose less than expected last month.

Focus is on an auction of U.S. 10-year and 30-year debt later in the day for clues to where yields in the recently volatile market may be headed.

"Expectations for near-term inflation to rise is going to remain due to the huge public borrowings, but the tame inflation data that has come today would definitely drive some optimism among investors," said Arthur Weise, chief investment officer at Kingsland Growth Advisors in New York.

Accelerated vaccine rollouts and a new hefty round of fiscal stimulus on the horizon have raised bets on higher inflation, triggering a sharp rise in Treasury yields that knocked off the tech-heavy Nasdaq about 7% from its Feb. 12 record closing high.

The United States plans to double its order of the single-shot Johnson & Johnson (NYSE:JNJ) coronavirus vaccine, procuring an additional 100 million doses, a White House official said on Wednesday.

The Nasdaq extended gains after logging its best one-day percentage jump in four months on Tuesday, helped by a near 20% jump in Tesla (NASDAQ:TSLA) Inc's shares as investors picked up momentum stocks that had recently taken a beating due to higher yields.

Amazon.com Inc (NASDAQ:AMZN), Microsoft Corp (NASDAQ:MSFT) and Tesla extended gains by 0.8% and 4% from the previous session, while economy-linked industrial and financial stocks jumped more than 1% each.

The chunk of a $1.9 trillion relief aid, which is on track to be signed into law later this week, is poised to end up in the stock market and could provide a boost for GameStop (NYSE:GME) and other stocks popular among retail investors active in online social media forums.

Shares of GameStop jumped another 19%, setting the videogame retailer on track for its longest streak of daily gains in six months and extending a rally that has already doubled the company's market value.

Among other "meme" stocks, Koss Corp and AMC Entertainment (NYSE:AMC) climbed 52% and 14%.

Advancing issues outnumbered decliners by a 4.2-to-1 ratio on the NYSE and by a 4.1-to-1 ratio on the Nasdaq.

The S&P 500 posted 20 new 52-week highs and no new low, while the Nasdaq recorded 174 new highs and 10 new lows.

Dow hits record high as inflation fears recede after data
 

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Comments (23)
perplexed76 .
perplexed76 . Mar 10, 2021 11:25PM ET
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Dow inflates to record as real economy stagnates
Casador Del Oso
Casador Del Oso Mar 10, 2021 2:12PM ET
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What about other forgotten fears? Possible Spring surge. No more stimulus packages. Business tax increases. Inevitable interest rate hikes.
SquadW Name
SquadW Mar 10, 2021 2:00PM ET
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hahahh can you print 30% of all dollars and still have 2% inflation? hahaahhaahahhaahahahahahah hhaahhaahahah thats not possible
Mitchel Pioneer
Mitchel Pioneer Mar 10, 2021 1:52PM ET
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Record levels of criminal manipulation in the greatest investment fraud in history.
Franco Dominguez
Franco Dominguez Mar 10, 2021 1:32PM ET
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steady inflation??? w stimulus over 10%GDP, no energy in texas and meat factories close . really??? this is a gme stock, sorry a meme
Gold Fever
Gold Fever Mar 10, 2021 1:32PM ET
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Soybeans rotting and the farmers still getting richer, greatest economy ever
Franco Dominguez
Franco Dominguez Mar 10, 2021 1:32PM ET
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even gold fever pot gamers win w gme
kangroo kiloo
kangroo kiloo Mar 10, 2021 1:31PM ET
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be ready a lost decade from 2021 - 2031 is coming. US government has spent more than  7 trillion dollars in one year which can be used to spend in next 10 years. so, a lost decade is coming just like japan.
Franco Dominguez
Franco Dominguez Mar 10, 2021 1:31PM ET
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really??? like the steady inflation data, manipulation gains. make more dollies and thats all
John Thompson
John Thompson Mar 10, 2021 1:31PM ET
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agree 100% Animesh
jamal jamal
jamal jamal Mar 10, 2021 1:23PM ET
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Always buy the dip! Never goes down!
Dave Jones
Dave Jones Mar 10, 2021 1:13PM ET
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so inflation is not measured by the cost of food or housing? Our 2 most basic needs. Wake up America your being destroyed by the money lenders
Gold Fever
Gold Fever Mar 10, 2021 1:13PM ET
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Nor gasoline, another basic need in America
Gold Fever
Gold Fever Mar 10, 2021 1:13PM ET
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If it says, made in China, then that’s counted for inflation numbers
Joe Messeri
Joe Messeri Mar 10, 2021 12:56PM ET
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This is all going to end well for the middle class
Ricardo Diogo
Rcd72 Mar 10, 2021 12:18PM ET
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inflate more and more and more the world is perfect ...what is GDP? who cares ....
Matt Kay
Matt Kay Mar 10, 2021 12:18PM ET
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Its more like "What are numbers?" PE/earnings/assets/.... list goes on
Frederick Chotsky
Chotsky Mar 10, 2021 11:00AM ET
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Bond yields have gone up *in anticipation* of inflation. The 1.4 trillion is getting passed today, so why would February CPI data matter as a measure of inflation? This writer clearly hasn't studied economics.
Stan Smith
Stan Smith Mar 10, 2021 11:00AM ET
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They need to distraction for whats coming
Joe Messeri
Joe Messeri Mar 10, 2021 11:00AM ET
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Stan Smith whats coming other than the middle class becoming non-existent as they pick up the tag for all the social programs amd debt
Gold Fever
Gold Fever Mar 10, 2021 11:00AM ET
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And it’s January data, it takes the government a month to calculate, but it’s all in a computer?? 🙄
Kaveh Sun
Kaveh Sun Mar 10, 2021 9:49AM ET
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Bonds yeilds havent back down but now they dont talk about it. They make up another reason because if their ‘yields’ reason is correct, the market should not goes up.
Naveen Saravanan
Naveen Saravanan Mar 10, 2021 9:49AM ET
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You are smart. Big boys control the market. Yields rising was just a scapegoat. They want GME to go up and thats why it is going up.
Massine Fariss
Massine Fariss Mar 10, 2021 9:45AM ET
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like seriosly , the guy who wrote this article has 00 knowledge in Macroeconomic data... just copy and paste
Matt Kay
Matt Kay Mar 10, 2021 9:45AM ET
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Two people... .assuming its people and not bots
Sreekumar Pookkudi
Sreekumar Pookkudi Mar 10, 2021 9:34AM ET
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super bubble. booking profit and going away from market.
Joe Messeri
Joe Messeri Mar 10, 2021 9:34AM ET
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I did that on January 15 when the senile bat was coming in
Oliver Brecht
Oliver Brecht Mar 10, 2021 9:24AM ET
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let's see next few months...
CHAD TENDIES
CHAD TENDIES Mar 10, 2021 9:16AM ET
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Lumber, Gasoline, Copper, Housing, College, Stocks, Groceries, Bitcoin. Inflation is here.
Cal Lowe
Cal Lowe Mar 10, 2021 9:16AM ET
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Not for long
Tarang Shah
Tarang Shah Mar 10, 2021 9:15AM ET
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perfect example! Torture the data in such a way that it confesses whatever you want!
Joel Schwartz
Joel Schwartz Mar 10, 2021 9:13AM ET
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Pull up an M2 money supply chart and tell me we have no inflation again. I dare you.
Jason Guptill
Jason Guptill Mar 10, 2021 9:13AM ET
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inflation doesn't start until prices rise, money supply does not equal inflation
Amol Gupta
Amol Gupta Mar 10, 2021 9:13AM ET
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you need money to churn, pick up velocity that's when you get inflation. not from that money sitting idle in your bank account.
Christian Askjær
Christian Askjær Mar 10, 2021 9:13AM ET
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Stan Smith
Stan Smith Mar 10, 2021 9:13AM ET
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Jason Guptill Wrong. The definition of inflation is the inordinate increase in the supply of money  and credit that CAUSES prices to rise. Stop looking at the symptoms
Jason Guptill
Jason Guptill Mar 10, 2021 9:03AM ET
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anyone talking about inflation being out of control must forget that these are February 2021 numbers, compared to February 2020 BEFORE the roni took over. go back and look at prices at that point, prices fell sharply and are recovering to where they were post roni. I still believe we will have high inflation, just not yet
Mike DeFonso
Mike DeFonso Mar 10, 2021 9:00AM ET
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Every price i pay is up 10%+ in less than a year, but tame inflation?
Dario Ruff
Dario Ruff Mar 10, 2021 9:00AM ET
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Dont worry at open we just gonna drop since inflation is “tamed”
Notvery Goodathis
Peteymcletey Mar 10, 2021 9:00AM ET
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Shadowstats time
Mike DeFonso
Mike DeFonso Mar 10, 2021 8:59AM ET
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Tame i flation? Are you kidding me?
 
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