- Title: Slowing inflation growth lifts Dow, S&P to records
- Date: 11th August 2021
- Summary: LOS ANGELES, CALIFORNIA, UNITED STATES (AUGUST 11, 2021) (REUTERS) (SOUNDBITE) (English) GERBER KAWASAKI, CEO, ROSS GERBER, SAYING "I think with markets today, what we're seeing is this sort of equilibrium the markets found between higher, much higher earnings, but also much higher valuations. So the market seems to be turning around, looking for a place that it's happy. So the earnings do support the current valuations, but where do we go from here? And so I think as the market turns higher, it needs more of a catalyst to keep moving higher. But with the Delta variant and the weaker time of the year coming in, investors are taking a little bit of pause to think about what's going to happen with this quarter's earnings in next quarters, earnings and Christmas season. And it's very hard to tell where the next turn we're going to take with coronaviruses going. So the market's looking for a place." WHITE FLASH (SOUNDBITE) (English) GERBER KAWASAKI, CEO, ROSS GERBER, SAYING "Well, I mean, inflation always goes up over time. I think what we're talking about is the rapid increase in prices I do think has peaked. And now with the Delta variant slowing the economy to some degree, I think that is almost like a rate hike in some ways. But when you go out here in the West Coast, it is busy. It is packed, last weekend. So the economy is still just bursting at the seams. So very, very positive on economic growth. But I do think things like used vehicle prices and energy prices that had really driven inflation have probably peaked, especially energy prices. So we never thought inflation was going to be a long-term problem. And we still don't think it's a long-term problem. I think the bigger long-term risk is slower growth, not inflation."
- Embargoed: 25th August 2021 21:06
- Keywords: COVID-19 Delta variant Dow Jones Nasdaq S&P 500 Wall Street coronavirus equities index indices markets shares stocks trading vaccine
- Location: NEW YORK, NEW YORK, + LOS ANGELES, CALIFORNIA, UNITED STATES
- City: NEW YORK, NEW YORK, + LOS ANGELES, CALIFORNIA, UNITED STATES
- Country: USA
- Topics: Economic Events,Equities Markets,United States
- Reuters ID: LVA002EPU7ARR
- Aspect Ratio: 16:9
- Story Text:The Dow Jones Industrial Average and S&P 500 closed at record levels on Wednesday (August 11), as data indicated U.S. inflation growth may have peaked, while sectors tied to economic growth advanced on the heels of the passage of a large infrastructure bill.
The Dow Jones Industrial Average rose 220.30 points, or 0.62%, to 35,484.97, the S&P 500 gained 10.95 points, or 0.25%, to 4,447.70 and the Nasdaq Composite dropped 22.95 points, or 0.16%, to 14,765.14.
(Production: Hyeongmi Kim, Aleksandra Michalska, Fred Katayama) - Copyright Holder: REUTERS
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