Wall Street raises the latest data on benign inflation

(Reuters) – US stocks rose sharply on Wednesday, with the S & P 500 reaching its highest level in five months, after latest data corroborates the Fed's patient stance on future rate hikes. interest.

Producer prices barely rose in February, resulting in the smallest annual increase for more than a year and a half, which is another indication of a benign inflation.

"This is a risky business, largely related to the persistence of moderate inflation that we see in yesterday's CPI and today's PPI. This gives investors certainty that the Fed will stay dovish, "said Ryan Nauman, market strategist at Informa Financial Intelligence in Zephyr Cove, Nevada.

Boeing Co reduced its gains after Canada became the last country to propel the company's best-selling 737 MAXs after a second fatal accident in a few months.

The actions of the world's largest manufacturer of planners have dropped in the last seven sessions and were beaten hardest this week after the crash.

Technology stocks gained 1.08% and provided the strongest momentum for the benchmark S & P 500. This sector was supported by Microsoft Corp and Apple Inc.

"The rebound in technology stocks shows that investors are confident in the conclusion of a trade agreement, it's just a matter of when," Nauman said.

British lawmakers were expected to oppose the threat of an exit without EU approval after the second defeat of Prime Minister Theresa May's divorce treaty, which left England in the dark. 'unknown.

At 12:49 ET, the Dow Jones Industrial Average was up 166.59 points, or 0.65 percent, to 25,721.25. The S & P 500 rose 23.67 points, or 0.85%, to 2,815.19 and the Nasdaq Composite, from 68.03 points, or 0.90%, to 7,659.06.

Other data showed that new orders for capital goods manufactured in the United States increased at a maximum in six months in January and shipments increased, suggesting solid equipment spending at the beginning of the year. .

CVS Health Corp increased 3.6% and was among the top S & P winners after Bernstein began hedging the Pharmacy Benefits Manager with an "outperformance" rating.

Increasing issues outnumbered declining ones with a ratio of 2.82 to 1 on the NYSE and a ratio of 1.97 to 1 on the Nasdaq.

The S & P index recorded 57 new highs over 52 weeks and no new lows, while the Nasdaq recorded 59 new highs and 26 new lows.