Wall Street Stocks Shoot Up Overnight

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Asian shares were mostly higher on Thursday, tracking an overnight rally on Wall Street as investors sought out bargains, including technology stocks, ABC News reports.

Benchmarks rose in Tokyo, Seoul and Sydney 

Benchmarks rose in Tokyo, Seoul and Sydney in morning trading.

Markets in Hong Kong were closed for a holiday.

Consumer price inflation slipped to 0.7% from 0.8% in August.

The move to allow the Singapore dollar to appreciate slightly against the U.S. dollar, widening the trading band from 0%, coincided with news that the city-state’s economy grew at a 6.5% annual pace in July-September.

South Korea’s Kospi jumped 1.1% to 2,975.65.

Anderson comments on Wall Street tech Growth

“Asian equities rose on Thursday, following a positive handover from Wall Street where tech and growth sectors outperformed,” said Anderson Alves of ActivTrades.

On Wednesday, the S&P 500 rose 0.3% to 4,363.80.

The Russell 2000 index added 0.3% to 2,241.97.

A mix of companies that rely on consumer spending also helped lift the market.

Fed officials agreed at their last meeting that if the economy continued to improve, they could start reducing their monthly bond purchases as soon as next month and bring them to an end by mid-2022.

Challenges of Rising Fuel Prices

Banks were among the heaviest weights on the market.

American Express fell 3.5% and Capital One Financial dropped 3.3%.

Delta Air Lines slid 5.8% for the biggest drop in the S&P 500 after warning that rising fuel prices will challenge its ability to remain profitable.

Consumer prices rose 5.4% in September from a year earlier, matching the highest rate since 2008.

That was slightly higher than economists expected.

Prices Hike 

“There’s a lot of nervousness and anxiety about inflation right now,” said Kristina Hooper, chief global market strategist at Invesco. 

As companies raise prices to offset higher shipping and raw materials costs, analysts are concerned higher prices could stall consumer spending, the key driver for economic growth.

The latest report from the Labor Department showed that costs of new cars, food, gas, and restaurant meals all jumped in September.

In energy trading, benchmark U.S. crude edged up 2 cents to $80.46 a barrel in electronic trading on the New York Mercantile Exchange.

The euro cost $1.1595, inching up from $1.1593

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Source: ABC News

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