Wall St rises after tame inflation supports patient Fed; Boeing drags Dow


A rally in the technology sector is pushing USA stocks to broad gains Monday, led by Apple and chipmakers.

Boeing briefly dipped, but finished slightly higher, after the US said it was joining other countries in grounding the company's 737 Max 8 airplane following a fatal crash of an Ethiopian airliner over the weekend.

Boeing fell 6.8 per cent after a second deadly crash involving one of its new 737 Max planes.

After consolidating near the opening, the Dow Jones Industrial Average rebounded on the back of a 3.47 percent gain in Apple shares.

Asian stock markets have followed Wall Street higher as investors look ahead to the British parliament's vote on a plan to leave the European Union.

The Labour Department said its Consumer Price Index (CPI) rose 0.2%, in line with estimates, and in the 12 months through February, the CPI rose 1.5%, the smallest gain since September 2016.

The S&P index recorded 43 new 52-week highs and one new low, while the Nasdaq recorded 50 new highs and 18 new lows. The Nasdaq, heavily weighted with tech stocks, jumped 149 points, or 2 per cent, to 7,558.

Boeing Co. shares were down another 2 percent in premarket trading Tuesday.

Apple rose 2% and was the biggest boost to the S&P and Nasdaq, after the iPhone maker invited media to a March 25 event where it is expected to launch a television and video service.

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The Commerce Department meanwhile reported United States retail sales had recovered slightly after a dismal December.

March 12 (Reuters) - U.S. stocks rose on Tuesday after tame inflation data supported the Federal Reserve's dovish stance on future rate hikes, but Boeing's fall for a second straight day in a row pressured the Dow.

The dollar fell more steeply shortly after data revealed that the US consumer-price index climbed 0.2% in February, matching market expectations, while the cost of living over the past year slowed again to 1.5% from 1.6%.

Monday's U.S. Retail Sales report offered mixed results.

The S&P 500 rose 13.4 points, or 0.5 per cent, to 2,756.

The bank's market value rose by $14 billion, which sounds impressive except for this fact: Apple, a much larger company, saw its market value rise by $24 billion, yet it accounted for less than 1% of the rise in the Dow because the price of its stock didn't change much.

The Dow lost 96 points, or 0.4 percent, to 25,554.

Visa (NYSE:) rose 1%, as Exxon Mobil (NYSE:) increased 1.3% and Goldman Sachs (NYSE:) was up 1.4%. Bank stocks also showed early strength, with Morgan Stanley gaining 1.6 percent. Additionally, sales in January increased 2.3 percent from a year ago. Facebook rose 2.3 per cent and Morgan Stanley rose 1.3 per cent.