Wall St Weighed Down by Inflation Jitters


Wall Street39;s main indexes slipped on Monday after a sharp recovery late last week, as signs of inflationary pressures building up in the economy kept investors worried about monetary policy tightening.

Shares of Discovery Inc jumped 7 on plans to merge with U.S. telecoms giant ATT Inc39;s media assets, including CNN and HBO. ATT shares gained 3.8.

The SP 500 saw its biggest oneday jump in more than a month on Friday as investors picked up beatendown stocks following a pullback earlier in the week on concerns around inflation and a soonerthanexpected tightening by the U.S. Federal Reserve.

In a relatively quiet week for economic data, minutes on Wednesday from the Fed39;s policy meeting last month could shed more light on the policymakers39; outlook of an economic rebound.

The conversation around inflation is really the focus of the market and everyone39;s trying to get a picture on whether the Fed is right in saying if this is all temporary or is this something they need to take more seriously, said Greg Swenson, founding partner of Brigg Macadam.

You39;ll continue to see rotation out of technology stocks not only because of the outperformance of tech in the last year versus cyclicals, but the only way you can stay long equities and hedge against inflation is own more cyclicals bank, energy.

The Russell 1000 value index, which includes energy and bank stocks, continued to outperform on Monday, taking its yeartodate gains to 17.3, versus its techladen growth…


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