S&P 500, Nasdaq end up but investors cautious before inflation data

A trader works on the floor of the New York Stock Exchange (NYSE) in New York City, US, May 9, 2022. REUTERS/Brendan McDermid

NEW YORK, May 10 (Reuters) – The S&P 500 and Nasdaq ended higher on Tuesday, with big growth shares rising after the previous day’s selloff as Treasury yields eased.

At the same time, bank shares fell. The yield on the benchmark 10-year note tumbled from more than a three-year high to below 3%.

The day’s trading was choppy, with major indexes moving between gains and losses as investors were also nervous ahead of the release of Wednesday’s US consumer price index data and Thursday’s producer prices data.

Investors will be looking for signs that inflation is peaking. read more

Worries that the US Federal Reserve may have to move more aggressively to curb inflation have driven the recent selloff in the market. A host of other concerns have added to the pressure.

“At this point, it’s just fear-based selling,” said Jake Dollarhide, chief executive officer of Longbow Asset Management in Tulsa, Oklahoma.

“It can’t just be the Fed’s going to raise rates to stave off inflation, because we’ve seen that before,” he said. Instead, investors are worried about everything from rates and inflation to the war in Ukraine, supply chain problems and China’s COVID-19 lockdowns, Dollarhide said.

Shares of Apple Inc (AAPL.O) were higher and giving the S&P 500 and Nasdaq their biggest boost. S&P 500 technology (.SPLRCT) led gains among sectors in the S&P 500.

According to preliminary data, the S&P 500 (.SPX) gained 10.77 points, or 0.27%, to end at 4,002.01 points, while the Nasdaq Composite (.IXIC) gained 114.11 points, or 0.98%, to 11,737.35. The Dow Jones Industrial Average (.DJI) fell 82.39 points, or 0.26%, to 32,163.31.

Investors digested comments from Cleveland Fed President Loretta Mester, who said the US economy will experience turbulence from the Fed’s efforts to bring down inflation running at more than three times above its goal and recent volatility in the stock market would not deter policymakers. read more

Peloton Interactive Inc (PTON.O) tumbled as the fitness equipment maker warned the business was “thinly capitalized” after it posted a 23.6% slide in quarterly revenue. read more

Reporting by Caroline Valetkevitch; additional reporting by Amruta Khandekar and Devik Jain in Bengaluru; Editing by Sriraj Kalluvila, Shounak Dasgupta and Aurora Ellis

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