US stocks rally on hopes of Fed rate pause
Large tech shares led the market on Thursday, lifting US stocks to strong gains following better inflation data that added to hopes of a shift in Federal Reserve monetary policy. Shares of Apple, Netflix and Google parent Alphabet rose at least two percent following the report on US wholesale prices, which declined 0.5 percent in March. The report came on the heels of government data on Wednesday that showed a generally improving pricing picture, although inflation remained elevated when food and energy costs were stripped out. "Inflation is on a slowing trend," said LBBW's Karl Haeling. "There's definitely an optimism that the end is near in terms of the Fed's cycle of interest rate increases." The tech-rich Nasdaq led the major indices, rising 2.0 percent to 12,166.27. The Dow Jones Industrial Average gained 1.1 percent to 34,029.69, while the broad-based S&P 500 jumped 1.3 percent to 4,146.22. The rally came on the eve of a deluge of earnings reports from large banks, including JPMorgan Chase and Wells Fargo, which added 0.4 percent and 1.2 percent, respectively. The results will receive heavy scrutiny following the failure last month of Silicon Valley Bank and two other lenders. Delta Air Lines declined 1.1 percent after reporting a $363 million loss in the first quarter. However, the company noted that it scored record March quarter revenue in light of strong underlying demand for flying. Hasbro advanced 2.6 percent after it announced executive appointments, including as chief financial officer the hiring of Gina Goetter, who has held that post at Harley-Davidson. Harley-Davidson fell 1.7 percent. (AFP)