NEW YORK, June 2 — The S&P 500 dipped yesterday, with declines in healthcare and tech shares countered by energy and financial gains, as investors weighed the latest US economic data for signs of a rebound and rising inflation.
“People came back from a holiday weekend convinced that the economy is recovering nicely and that any inflation that we might be seeing in labour and other costs is temporary,” Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. While the S&P 500 remains less than 1 per cent of its record high after four straight months of gains, investors are worried about whether rising inflation could hit equity prices.
Stock markets on Friday brushed off a surge in key inflation readings for April following reassurances from Federal Reserve officials that the central bank’s ultra-loose monetary policy would remain in place. A group of “meme stocks” extended gains from the previous week, with shares of AMC Entertainment Holdings Inc up 22.7 per cent after the movie theatre chain said it sold US$230 million of its stock.