US Stocks Rise As Investors Remain Optimistic About Economic Reopening | Currency News

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US Stocks Rise As Investors Remain Optimistic About Economic Reopening | Currency News


US stocks edged higher on Wednesday as stocks related to the economic reopening took the lead. The Russell 2000 Small Cap Index climbed 2%, outperforming other US indices. Meanwhile, the Dow Jones was nearly flat, a less than exciting way to celebrate its 125th anniversary. Tesla gained more than 3%, pushing the cyclical consumer sector higher.

Central bank officials have signaled that inflationary pressures are temporary, allaying investor fears that a policy change will come sooner than expected.

Fed Vice Chairman Richard Clarida said on Tuesday that it would be possible to discuss reducing the pace of asset purchases, and that the pressure on prices will prove “largely transient”.

San Francisco Fed Bank President Mary Daly told CNBC on Tuesday that economic progress looked encouraging, but it was not yet time for a policy change.

“What we have seen are very positive points, very encouraging news,” she said. “It gives me hope and I’m optimistic for the future. But it is too early to say the job is done. “

Here’s where the U.S. indices were at the 4 p.m. ET close on tk:

Goldman Sachs said US stocks are now facing “headwinds” after a 12-month rally, with bond yields rising, higher inflation and slower job growth expected to weigh on prices stocks as markets move into 2022 and beyond.

Frantic meme-stock trading continued today. GameStop has jumped over 35% in the past two days, while AMC is up 49% since the start of the week. Further rallies in both stocks caused short sellers to lose $ 618 million on Tuesday alone, while BlackBerry jumped 12% on Wednesday.

In other GameStop news, the video game retailer is building an NFT platform. It’s part of an ambitious plan to transform into the gaming Amazon.

Societe Generale said commodity prices risked a major reversal that could undermine investors’ positioning in the face of rising inflation.

West Texas Intermediate crude rose as much as 0.5%, to $ 66.43 per barrel, while crude, the international benchmark for oil, rose 0.7% to $ 69.17 per barrel. at intraday highs.

Gold slipped 0.3% to $ 1,890.7 an ounce.

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