The Dow Jones Industrial Average (DJIA) returned from last week’s 2% decline, with investors pushing the index higher by 0.5%, or 175 points, ahead of critical inflation data later this week.
Members of the Federal Reserve suggested in public statements that inflation remained a concern that could necessitate additional interest rate hikes, and the Federal Reserve’s Vice Chair, Michael Barr, stated that banks may require even stricter rules to maintain financial stability. While the Dow reacted more positively to the news, the NASDAQ and S&P 500 were up about 0.1% in the trading session as investors await the Consumer Price Index inflation data on Wednesday.
Amgen (AMGN) jumped 2.5% to lead the Dow Jones higher, while Walgreens Boots Alliance (WBA) increased 2%. Merck & Co. (MRK), another pharmaceutical company, jumped 1.3%, while the health sector advanced 0.7%.
The industrial sector outperformed, rising 1.3%, with Honeywell (HON) shares rising 1.9% after the company announced plans to acquire Scadafence, an Israeli cybersecurity provider. Caterpillar (CAT) increased by 1%.
While technology equities have been leading recent market gains, they are now at the opposite end of the spectrum.
Microsoft (MSFT) fell 2.4% as investors await the conclusion of a U.S. District Court hearing on whether to grant the Federal Trade Commission a temporary injunction blocking its acquisition of Activision Blizzard. The judge’s decision on the injunction is due this week, with the firms warning that if the injunction is granted, the merger will most certainly die.
Apple (AAPL) shares fell 1.6% after one of its key suppliers, Foxconn, announced it would withdraw out of an agreement to build a semiconductor chip manufacturing facility in India. In the face of escalating political tensions, Apple has urged its affiliates to diversify its supply chain in order to lessen its dependency on mainland China.
Verizon (VZ) declined 1.4% after a report revealed that multiple large telecom companies had left behind up to 2,000 old telephone cables that are lead-contaminated, potentially resulting in an expensive environmental cleanup for the corporation. AT&T (T) shares declined 2.2% as a result of the newly released report.
- The Dow Jones Industrial Average rebounded by 0.5% or 175 points ahead of key inflation data.
- Drugmaker Amgen and pharmacy chain Walgreens Boots Alliance were among the top gainers in the health sector.
- Honeywell shares rose after announcing its acquisition of Israel-based Cybersecurity provider Scadafence.
Please note that this article does not offer any instructions or suggestions regarding investment decisions. It is important for you to conduct your own research or seek professional advice from a qualified professional before conducting an investment decision.