Stock market today
A higher close for the US stock market today, small-cap stocks outperformed. Dow Jones closed flat, S&P 500 almost flat too. The closing numbers for the US stock market today follow.
S&P 500: 4,195.99,+7.86(+0.19%)
Dow 30: 34,323.05,+10.59(+0.03%)
Russell 2000: 2,249.27,+43.52(+1.97%)
Stock market news
“Stocks traded slightly higher Wednesday as investors at least temporarily set aside concerns over rising inflation. Technology stocks outperformed and the Nasdaq rose, while the S&P 500 and Dow ended slightly above the flat line.
Investors this week have continued to contemplate prospects that higher inflation during the post-pandemic recovery will ultimately curb the extent of the rebound in economic activity and rally in stock prices. New data Tuesday showed consumer confidence dipped in April even as more social distancing standards were lifted, with the decline coming in part as consumers took note of rising price pressures.
“I do think we’ve been in this consolidation phase, really since early April. That’s when we started a new phase in this market cycle, the first one [was] that recovery in stay-at-home stocks from March to November last year, the second phase was the reopening phase from November to March,” Gabriela Santos, global market strategist at JPMorgan Asset Management, told Yahoo Finance. “Now we’re moving beyond the recovery and focusing on the expansion up ahead. And we haven’t had a lot of new data on this recently, so it makes sense to see stocks consolidate.”
“What we’ll start to see over the next few months is for growth to peak and then slowly moderate,” she added. “That’s still a constructive backdrop for stocks. It’s just that the actual sector selection, company selection becomes a lot more important. And the focus is increasingly on inflation rather than real growth, and ways to hedge upside risks to inflation in this new cycle.”
But at least as it relates to monetary policy, a short-lived jump in inflation would not spur the Federal Reserve to immediately wind down its crisis-era support, numerous U.S. central bank officials recently reassured market participants. On Tuesday, Federal Reserve Vice Chair Richard Clarida told Yahoo Finance that “there will come a time in upcoming meetings” when the central bank would discuss scaling back asset purchases, but that “it is going to depend on the flow of data” – reaffirming the Fed is not on a set timeline when it came to rolling back policies that have supported the economic recovery and asset prices.”