Wall Street Has One Of Best Days Since Mid-May As US Inflation Fears Cool

Wall Street Has One of Best Days Since Mid-May as US Inflation Fears Cool

NEW YORK (UrduPoint News / Sputnik - 25th May, 2021) Wall Street had one of its best days since mid-May after a surge in risk appetite and tamped down fears about US inflation lifted industrial and technology stocks.

The S&P 500, which groups the top 500 stocks on the New York Stock Exchange, settled up 42 points, or 1 percent, at 4,198 on Monday. Its previous biggest gain was 1.5 percent on May 14.

The Dow Jones Industrial Average, the broadest US equity barometer, closed up 186 points, or 0.5 percent, at 34,394. That matched the 0.5 percent gain on the Dow from May 20.

The Nasdaq Composite index, which includes high-flying tech stocks such as Facebook, Amazon, Apple, microsoft, Netflix and Google, rose 190 points, or 1.4 percent, to finish at 13,661.

It was the technology bellwether's biggest one-day win since May 20, when it rose 1.8 percent.

US stocks have mostly fallen this month on fears of inflation as prices of almost all commodities - from lumber to soybeans - rose on the back of an economy recovering from the coronavirus pandemic.

The Federal Reserve has insisted that the higher price pressures were just transitory and will come to pass once bottlenecks in the supply chain dissipate. Investors seemed to buy some of that argument on Monday, with the Dollar and yields tied to the 10-year US Treasury note both trading sharply off May's highs.

With Monday's rebound, the S&P 500 is up 1 percent for May while the Dow has risen 0.4 percent. Nasdaq is down 2.5 percent for the month.