Stocks rise as inflation report keeps rate hikes on track

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Wall Street capped a day of wobbly trading with modest gains for stocks, as investors weighed the implications of the latest economic snapshot showing rising inflation.

Wall Street capped a day of wobbly trading with modest gains for stocks Wednesday, as investors weighed the implications of the latest economic snapshot showing rising inflation.

“That's the next that investors are looking at, trying to figure out what the Fed is really, really going to do and what they really can do,” said Tom Martin, senior portfolio manager with Globalt Investments. A mix of retailers and other companies that rely on direct consumer spending, such as auto companies, also made solid gains. Nike rose 1.3%.

“We’re in a period where I don’t think we’ve ever been before with the amount of stimulus that was put to work,” said Greg Marcus, managing director of UBS Private Wealth Management. “You can't have that much of an increase without having inflation ticking up.” Businesses in a wide range of industries have been passing higher costs off to consumers, but many have been warning that they will still feel a financial impact because of higher prices and supply chain problems. Medical products maker Cardinal Health was the latest to issue such a warning earlier this week.

 

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