The S&P 500 and Nasdaq rose on Tuesday after tame inflation data underscored the Federal Reserve’s dovish stance on rate hikes, but the Dow ended down as Boeing’s shares sank for a second day after one of its planes crashed in Ethiopia.
The Labor Department said its Consumer Price Index rose last month, in line with estimates, and in the 12 months through February the CPI had the smallest gain since September 2016. US Treasury yields fell following the news.
Boeing Co ended down 6.1 percent and registered its biggest two-day drop since June 2009, as more countries grounded the company’s best-selling 737 MAX planes following Sunday’s crash, the second fatal crash involving the plane in months. Senators Mitt Romney and Elizabeth Warren also urged the Federal Aviation Administration to temporarily ground the aircraft. The Dow Jones airlines index dropped 2 per cent, while the S&P industrials index fell 0.9 percent.
The Dow Jones Industrial Average fell 96.22 points, or 0.38 per cent, to 25,554.66, the S&P 500 gained 8.22 points, or 0.30 per cent, to 2,791.52 and the Nasdaq Composite added 32.97 points, or 0.44 percent, to 7,591.03. The S&P 500 rose as high as 2,798.32 during the session, just below a key technical level of 2,800. If it breaks above that level, that could signal further gains, some investors say. The index briefly pared gains in afternoon US trading following news that British politicians crushingly rejected May’s deal to quit the EU.Morning-Market-Note-Wednesday-13th-March