(Reuters) – The S&P 500 and the Nasdaq rose on Tuesday, but gains were reversed after a report that Russian missiles crossed into Poland killed two people, somewhat undermining hopes that slowing inflation will dampen interest rate hikes by the European Union. US Federal Reserve.
Two people were killed in an explosion in the village of Przyodo, in eastern Poland, near the border with Ukraine, firefighters told Reuters.
The Associated Press quoted a senior US intelligence official as saying that the explosion was caused by Russian missiles crossing into Poland. However, the Pentagon said on Tuesday that it could not confirm reports that Russian missiles had crossed into Poland.
Russia bombarded cities across Ukraine with missiles, in attacks Kyiv said were the heaviest wave of missile strikes in nearly nine months of war, while Poland’s prime minister called for an urgent meeting of a government commission on national security and defense affairs.
“The pullback was triggered by reports of a Russian missile landing in Poland,” said Steve Sosnick, chief strategist at Interactive Brokers. “This could develop into something much worse, but right now the markets are nervous, not panicked.”
Stocks fell around midday, after jumping higher earlier in the session after data showed US producer prices rose less than expected.
“You continue to see choppy trading across the markets,” said Matthew Maskin, chief investment strategist at John Hancock Investment Management.
“We are not out of the woods yet with regard to the Russo-Ukraine war. We are getting progressively better data on inflation but there are still concerns about growth.”
Dow Jones Industrial Average (.DJI) The S&P 500 rose 9.73 points, or 0.03%, to 33,546.43. (.SPX) rose 29.4 points, or 0.74%, to 3,986.65, the Nasdaq Composite (nineteenth) It added 156.76 points, or 1.4%, to 11,352.98 points.
Tuesday’s inflation report showed producer prices rose 8% in the 12 months through October, against an estimated rise of 8.3%.
Stocks’ gains on Tuesday built on a rally that started late last week with a cooler-than-expected consumer price report.
Wal-Mart shares (WMT.N) It jumped 7% after the major US retailer raised its annual sales and profit forecasts, benefiting from steady demand for groceries despite higher prices.
Shares of other retailers, including Target Corp (TGT.N) and Costco (COST.O)also rose after the Wal-Mart report.
Additional reporting by Louis Krauskopf and Carolina Mandel in New York, Shubham Batra, Sruthi Shankar, Amruta Khandekar and Anika Biswas; Additional reporting by Davek Jain. Editing by Chunak Dasgupta and Arun Koyoor
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