Stocks climb again after shaky start
Investors saw new hints that inflation is increasing yesterday, but still sent banks, technology firms, and consumer-focused companies climbing.
After a shaky start, stocks rose for the fourth straight trading day, even as bond yields reached four-year highs. The move in yields came after the government said consumer prices climbed in January at a slightly faster pace than was forecast.
Stocks plunged Feb. 1 after the Labor Department said wages grew rapidly in January. Investors worried that meant inflation was rising and that interest rates would rise more quickly. But yesterday's reports indicated inflation isn't rising that fast.
The Standard & Poor's 500 index rose 35.69 points (1.3 percent), to close at 2,698.63. The Dow Jones industrial average added 253.04 points (1 percent), to 24,893.49. The Nasdaq composite climbed 130.10 points (1.9 percent), to 7,143.62. The Russell 2000 index of smaller-company stocks rose 27.15 points (1.8 percent), to 1,522.10.