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Overnight Markets: Wall Street shrugs off inflation data to extend rally

Overnight Markets: Wall Street shrugs off inflation data to extend rally

Wall Street rallied on Wednesday after investors shook off initial anxieties prompted by stronger-than-expected inflation data and snapped up shares of Facebook, Amazon.com and Apple.

The Dow Jones Industrial Average rose 1.03% to end at 24,894 while the S&P 500 added 1.34% to finish at 2,699. The Nasdaq Composite surged 1.86% to 7,144.

The Labour Department’s core Consumer Price Index increased 0.3% in January, while economists polled by Reuters had forecast an increase of 0.2%. The data rekindled fears that the Federal Reserve would feel compelled to act aggressively to tamp down rising prices by hiking rates at a rapid clip in 2018.

But those concerns were tempered by data showing US retail sales fell 0.3% last month, the biggest decline in nearly a year.

Wall Street overcame an early bout of anxieties after tech stocks including Facebook, Amazon and Netflix spearheaded a rebound.

Facebook (FB.O) jumped 3.7% while Amazon.com (AMZN.O) and Apple (AAPL.O) both rose more than 1.8%. Netflix Inc. shares jumped about 3% after the New York Times reported that the company has lured one of Hollywood’s top TV hitmakers, producer Ryan Murphy, in a deal worth as much as $300 million.

Elsewhere, Fossil (FOSL.O) surged 87.7% after the watchmaker’s strong holiday-quarter sales and a rush among short-sellers to cover their positions.

Chipotle Mexican Grill (CMG.N) rose 15.4% after it hired Brian Niccol from Taco Bell as its next chief executive, which analysts said sparked hopes of a quicker turnaround.

Molson Coors Brewing Co. shares rose 6.3% after better-than-expected earnings results.

In Asia, stocks advanced early on Thursday, taking cues from the rally on Wall Street.

Japan’s Nikkei 225 rose 1.14%, while in Sydney, the S&P/ASX 200 rose 0.81%. In Hong Kong, the Hang Seng Index was trading 1.33% higher. Markets in China and South Korea are closed on Thursday for the Lunar New Year holiday.

 

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