Big Tech Stocks Rise After Good News on Inflation

But Airbnb was on the losing side
By Newser Editors and Wire Services
Posted May 10, 2023 3:40 PM CDT
Stocks Edge Upward After Good News on Inflation
Traders work on the floor at the New York Stock Exchange.   (AP Photo/Seth Wenig)

Wall Street closed slightly higher Wednesday after a report showed inflation is making strides toward easing, even if it remains too high. The S&P 500 rose 18.47, or 0.4%, to 4,137.64 after swinging between gains and losses through the day. The Dow Jones Industrial Average slipped 30.48, or 0.1%, to 33,531.33, while the Nasdaq composite rallied 126.89, or 1%, to 12,306.44. Bond prices climbed after the highly anticipated report said inflation at the consumer level edged down to 4.9% last month, its lowest level in two years, the AP reports.

That was slightly better than economists expected, and other underlying measures of inflation also came in very close to forecasts. Because of that, Wall Street still sees the door open for the Federal Reserve to leave interest rates alone at its next meeting in June. That would be the first time it hasn’t raised rates at a meeting in more than a year, and a pause would offer some breathing room for the economy and financial markets. Following the report, traders upped the probability they see of the Fed holding rates steady in June to 99.6%, according to data from CME Group.

Stocks that benefit the most from an easing of interest rates were leading the way on Wall Street, including Big Tech and other high-growth stocks. Amazon's 3.3% rise and Microsoft's 1.7% climb were two of the biggest forces pushing the S&P 500 higher. On the losing end of Wall Street, Lincoln National fell 4.5% after reporting weaker profit for the latest quarter than expected. Airbnb dropped 10.9% despite reporting profit that matched analysts' forecasts. It gave financial forecasts for the current quarter that were weaker than some on Wall Street expected. Icahn Enterprises, the partnership run by high-profile activist investor Carl Icahn, sank 15.1% after disclosing federal prosecutors asked for information related to its corporate governance and other matters.

(More stock market stories.)

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