Stock market's advance on tame inflation reading stalls

Stock market's advance on tame inflation reading stalls

Having started the day on a positive note, key share indices in the U.S. traded on a mixed note through the session on Monday, with the Nasdaq Composite clocking a record closing high, and Dow Jones Industrial Average and S&P 500 ending lower.

Rapid gains in technology stocks have already powered the Nasdaq.IXIC back to its record levels. Microsoft was among the worst-performing stocks on the Dow, falling 2.4 percent.

The advances followed a near 2 percent gain for the main indexes on Friday after data showed sluggish wage growth in February, easing concerns about the Federal Reserve moving too fast on interest rate hikes.

USA stocks seesawed as investors digested the latest shakeup at the White House and on the heels of a tame inflation reading.

Traders of USA short-term interest-rate futures kept bets the Federal Reserve will stick to three rate hikes this year.

However, the S&P and the Dow have almost reclaimed those losses. The UK's FTSE index was trading higher by 0.02 percent, while French CAC 40 Index rose 0.29 percent.

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Trump softened his stance last week by exempting Canada and Mexico, but negotiations are ongoing as the European Union also seeks to exempt itself from the tariffs.

Futures for the Dow Jones Industrial Average gained 96 points to 25,456.00, while the Standard & Poor's 500 index futures rose 9.45 points to 2,798.00. Wall Street stocks advanced early today, keeping positive momentum from last week's strong jobs report ahead of key data releases on USA inflation and retail sales.

Even with the session's losses, the S&P 500 is just 3.1 percent below record highs hit on January 26, while the Nasdaq.IXIC has recovered its losses from last month's sell-off.

Oclaro (OCLR.O) jumped 25 percent and was the most traded stock premarket after laser and optical fiber specialist Lumentum Holdings (LITE.O) said it would buy the optical components producer for $1.7 billion.

Broadcom gained 3.4 percent while shares in Qualcomm were flat. Shares in Reckitt Benckiser and tobacco makers British American Tobacco and Imperial Brands fell between 0.4 per cent and 1.9 per cent.

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