US: Optimism over reopening economy boosts stocks

[NEW YORK] Wall Street stocks were mostly higher early Tuesday, adding to the prior session's momentum as optimism over the reopening economy offset concerns about inflation.

Analysts pointed to a pullback in the yield on the 10-year US Treasury note as an indicator that inflation worries may be ebbing. Anxiety that a jump in inflation could spark a sudden shift in Federal Reserve policy has weighed on the market in recent weeks.

Briefing.com analyst Patrick O'Hare characterised the sentiment as a "tentative calm," adding that "we're still at base camp for a few more months, where high inflation prints can be rationalized on the basis of low base effects."

About 20 minutes into trading, the Dow Jones Industrial Average was flat at 34,382.21.

The broad-based S&P 500 added 0.1 per cent at 4,201.12, while the tech-rich Nasdaq Composite Index gained 0.4 per cent t to 13,714.38.

Among individual companies, Moderna rose 4.2 per cent after the drugmaker said trials had shown its Covid-19 vaccine is "highly effective" in adolescents aged 12-17, and the company would seek regulators' approval in June.

AFP