Wall St. rises after timid inflation supports Fed, Boeing setback drags Dow

by   |  VIEW 244
Wall St. rises after timid inflation supports Fed, Boeing setback drags Dow

On Tuesday, the 12th of March 2019, the US stocks rose, after US Labor Department had revealed its smallest gain in Consumer Price index (0.2 percent) since September 2016 and controlled inflation well-below US central bank’s target despite a wage growth of 3.4 percent in February amid a squeezed labor market.

Meanwhile, Boeing Co. shares fell for the second straight day, mounting pressure on Dow Jones Industrials. On Tuesday (March 12th) US morning trading session, the US Labor Department’s CPI data had also revealed that the US Consumer Price Index had posted gains after three straight months of pause.

Besides, a well-checked inflation data had been supporting the Fed’s patient stance over further interest rate hike this year. Citing a well-controlled inflation data supporting Federal Reserve’s monetary policy, a Chief Investment Officer for Independent Advisor Alliance in Charlotte, North Carolina, Chris Zaccarelli said, “The takeaway from the data was that inflation is in check and that would allow the Fed to remain patient and that is always good for equities”.

Apart from that, Boeing Co. had extended yesterday’s losses following a Boeing 737 Max aircraft crash in Ethiopia, and so far, it had posted a plunge of 6.4 percent on Tuesday (March 12th). While this report was being prepared, March 12th, GMT.

18.00, the Dow was down by 0.29 percent and S&P 500 posted a gain of 0.43 percent, while the tech-heavy Nasdaq Composite added 0.65 percent.