Value stocks lag growth equities after U.S. CPI inflation report

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Value stocks were lagging growth equities on Wednesday, in a choppy trading session as investors assessed fresh U.S. inflation data for April.

Value stocks were lagging growth equities on Wednesday afternoon, in a choppy trading session as investors assessed fresh U.S. inflation data for April.

The iShares Russell 1000 Growth ETF IWF was up 1.1%, while the iShares Russell 1000 Value ETF IWD edged up 0.1%, according to FactSet data, at last check. The headline CPI numbers on inflation were “essentially flat,” he said. The pace of inflation eased to a year-over-year rate of 4.9% in April, from 5% in March. So-called core inflation, which excludes energy and food prices, cooled slightly to a rate of 5.5% over the past 12 months, from 5.6% in March.

The Fed has been battling stubbornly high inflation by rapidly raising rates over the past year. Although some investors have been anticipating rate cuts later this year, Orlando disagrees, saying the stock market will probably have to readjust those expectations. U.S. stocks were trading mostly higher late afternoon Wednesday, with the S&P 500 SPX up 0.5%, technology-heavy Nasdaq Composite COMP climbing 1.2% and the Dow Jones Industrial Average DJIA slipping 0.1%, according to FactSet data, at last check.

 

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