Shares of industrial and transportation companies rose after a report of muted inflation.
Investors are shrugging off vows from the Federal Reserve to continue with its rate-hiking cycle and positioning themselves in cyclical sectors such as industrials in expectation of a pivot on rates in the relatively near future.
"The sixth consecutive month of cooling price pressures and a big rally in bonds, I think gives the market some hope, if you will, that things may not be as aggressive from the Fed point of view as we saw in the past," said JJ Kinahan, chief executive of IG North America, the parent company of options firm tastytrade.
Volkswagen reported its lowest sales in more than a decade, as jammed supply chains slowed deliveries while the Ukraine war and Covid-19 outbreaks kept many factories shuttered. Shares rose slightly after the German auto giant said the easing of such pressures should lift performance this year.
Luxury electric-vehicle maker Lucid Group surpassed its production target for 2022, but only got about 60% of them into the hands of buyers as the company had logistics issues.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
01-12-23 1733ET
