By Chuck Mikolajczak
NEW YORK, March 15 (Reuters) – U.S. stocks rallied on Tuesday and the S&P 500 ended a three-day losing streak as a further drop in oil prices and a smaller-than-expected rise in Producer prices helped ease investors’ jitters over inflation.
* Attention turned to the upcoming Federal Reserve monetary policy announcement.
* Brent crude closed below $100 a barrel, after rising to above $139 last week, which was a relief to equity investors who have seen stocks come under pressure this week. year due to growing concerns about inflation and uncertainty about the path of the Fed’s monetary policy.
* US producer prices rose sharply in February, due to a rise in gasoline, and further increases are expected after the Russian invasion of Ukraine, which has made crude oil and other raw materials more expensive.
* Still, data for the 12 months to February matched expectations for a 10% increase, while the producer price index for final demand in monthly terms increased 0.8%, just below the estimate of 0.9% and less than the increase of 1.2% in January.
* The market is pricing in a rate hike of at least 25 basis points when the central bank delivers its policy statement on Wednesday. Investors will also keep a close eye on the Fed’s forecast for the path of rates this year and beyond to curb inflation.
* Fed Chairman Jerome Powell has recently floated multiple rate hikes this year.
* The Dow Jones Industrial Average rose 599.1 points, or 1.82%, to 33,544.34 points, while the S&P 500 gained 89.34 points, or 2.14%, to 4,262.45 points. The Nasdaq Composite added 367.40 points, and 2.92%, and 12,948.62 units.
* The S&P 500 had slumped 2.4% in the previous three sessions and recently joined the Dow, Nasdaq and Russell 2000 in forming a “death cross” technical pattern, when a moving average of The short-term crosses below a long-term one, which some investors believe indicates more short-term weakness.
(Reporting by Chuck Mikolajczak; Spanish editing by Carlos Serrano)