Dow rides energy, U-turn in tech to close higher; European stocks close slightly lower as inflation nerves grip markets
Investors shrugged off some signs of an economic slowdown ahead of a key inflation reading. The S&P 500 gained nearly 1%, rising for a second straight day. The 30-stock Dow advanced more than 260 points, Tuesday, while the tech-heavy Nasdaq Composite rose 0.9%.
Target cut its profit guidance on Tuesday, saying it plans to get rid of excess inventory. The development highlighted risks about economic growth amid surging inflation. Meanwhile, the Atlanta Federal Reserve’s GDPNow tracker showed a growth rate of just 0.9% for the second quarter, down from 1.3% last week.
The pan-European Stoxx 600 provisionally ended 0.3% lower, with technology stocks shedding 1.2% to lead losses as most sectors and major bourses slid into negative territory.
It was a quiet day on the data and earnings front in Europe. Germany’s industrial orders fell by more than expected in April for a third consecutive monthly decline, as weak demand and added uncertainty since Russia’s invasion of Ukraine continued to weigh.
In terms of individual share price movement, Swedish cloud computing firm Sinch fell 5.4% to the bottom of the Stoxx 600, while Swiss logistics company Interroll fell 3.5% after Credit Suisse cut its target price for the stock.
Source: CNBC, Investing.com