Stocks Climb While Dollar Slides Most Since May: Markets Wrap
- U.S. inflation hits 39-year high, sets stage for rate increase
- Fed’s Mester says case for removing support is ‘compelling’
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Stocks rose as a report showing the fastest inflation in about four decades was roughly in line with market expectations, with traders keeping their bets on a rate hike in March.
Commodity and retail companies led gains in the S&P 500. Electric-vehicle maker Tesla Inc. and Google’s parent Alphabet Inc. paced a rally in megacaps. Financial shares underperformed, with major banks set to report their results Friday. Goldman Sachs Group Inc. and Morgan Stanley tumbled, while Jefferies Financial Group Inc. slid after saying fixed-income trading revenue plunged 50% from a year earlier. The Bloomberg Dollar Spot Index had its worst session since May.