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A trader in a face mask works on the trading floor at the New York Stock Exchange as the Omicron coronavirus variant continues to spread in Manhattan December 20, 2021. —Reuters pic
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NEW YORK, April 13 — US shares dropped at the open today but quickly reversed course, gaining ground despite further signs of steep inflation gains.
Investors also were dissecting key corporate results as quarterly earnings season got underway.
After blazing consumer price data yesterday, the government reported record wholesale prices for the 12 months ended in March, which undermines the optimism that inflation had peaked — especially given the uncertain outlook for the war in Ukraine, which has driven global oil prices higher.
The data solidifies the case for the Federal Reserve to ramp up its interest rate hikes to try to douse inflation.
“Inflation pressures are broadening out and they are significant in many categories that matter most for consumers, like food, energy, and shelter,” Briefing.com analyst Patrick J O’Hare said.
“It’s another reminder that the Fed needs to get aggressive with its policy to get these rampant inflation pressures in check.”
About 40 minutes into the trading session, the Dow Jones Industrial Average was up 0.1 per cent at 34,237.01, and the broad-based S&P 500 made a similar gain to 4,400.77.
The tech-rich Nasdaq Composite Index rose 0.6 per cent to 4,400.77.
JPMorgan Chase, which reported mixed first-quarter results early today, dropped 3.1 per cent.
Delta Air Lines, the first airline to report results, offered an upbeat outlook saying the worst days are over. Shares jumped 5.8 per cent. — AFP