Investors flocked to tech stocks Wednesday, driving Wall Street higher. Cooling inflation fears dragged down Treasury yields, and that fueled the rally in rate-sensitive growth stocks like Apple and Microsoft.
The Dow finished a half percent higher. The S&P 500 gained 1%, and the Nasdaq jumped 1.4%.
But Kramer Capital Research Chief Investment Officer Hilary Kramer says it’s too soon to put inflation worries to bed.
“Now the demand is so great that companies cannot fulfill the orders. Smaller businesses are not getting access like they need, and we're going to see a spiraling inflation. And we're going to see wage inflation very, very soon.”
Risk sentiment also improved as cryptocurrencies recovered some losses after further signs of a Chinese crackdown on the sector fueled a selloff. Shares of miners Riot Blockchain rose 14% and Marathon Digital 11%.
Virgin Galactic shares skyrocketed 28%. British billionaire Sir Richard Branson’s spaceship company completed its first manned space flight over the weekend.