Tech Climbs as Wall Street Ponders Vaccines Woes, CPI
Tech stocks rose in early U.S. trading, as investors pondered a pause in the rollout of Johnson & Johnson's Covid-19 vaccine and data showing an uptick in inflation.
The Labor Department reported its consumer price index rose 0.6 percent in March, 2.6 percent higher than the same month in 2020.
That was its fastest monthly increase since 2012, but analysts expect the spike to be temporary and don't believe it will cause the Federal Reserve to raise rates from their current zero level.
Perhaps more concerning to markets was U.S. health authorities' recommendation that use of the Johnson & Johnson's Covid-19 vaccine be paused over potential links to a rare type of blood clot.
"This news has created a big PR problem as it is apt to scare some people away from getting the JNJ vaccine if (government regulators) come back around and deem it safe for use again," Patrick J. O'Hare of Briefing.com said.
About 40 minutes into trading, the tech-rich Nasdaq Composite Index had climbed 0.7 percent to 13,942.76.
The benchmark Dow Jones Industrial Average fell 0.4 percent to 33,617.43, while the broad-based S&P 500 gained 0.1 percent to 4,132.22.
Johnson & Johnson lost 2.3 percent while Moderna, another vaccine manufacturer, rose 5.9 percent.
Airlines suffered on fears of a delayed reopening to the U.S. economy, with Delta Air Lines losing 4.1 percent, United Airlines 3.3 percent and American Airlines 4.8 percent.
Source: Agence France Presse
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