- Cryptocurrency stocks track bitcoin prices higher
- Amazon buying MGM for $8.45 bln
- S&P 500 to end year 2.5% above current level - poll
- Indexes up: Dow 0.08%, S&P 0.13%, Nasdaq 0.40%
May 26 (Reuters) - U.S. stocks rose marginally on Wednesday after remarks from Federal Reserve officials helped ease worries about higher inflation, while a recent dip in bond yields supported tech-related stocks.
Higher yields pressure valuations for tech and other growth stocks, whose future cash flows are discounted at higher rates.
"The market seems to have calmed today but we see good demand for tech-related stocks even as most investors are conservatively optimistic," said Jason Barsema, co-founder and president of Halo Investing.
"If data suggests any jump in inflation, it could lead to some volatility."
After fears of rising inflation roiled Wall Street's main indexes earlier this month, all eyes will be on the closely watched monthly U.S. personal consumption report, the Fed's favorite inflation gauge, due later in the week.
Fed vice chair Richard Clarida downplayed the effects of higher price pressures on Tuesday, voicing faith in the central bank's ability to engineer a "soft landing" if prices continued to escalate beyond what was expected. read more
With the S&P 500 sitting just about 1% away from its record high, strategists expect the benchmark index to end the year only about 2.5% above its current level as concerns over increasing inflationary risks weigh, according to a Reuters poll.
At 11:33 a.m. ET, the Dow Jones Industrial Average (.DJI) was up 26.54 points, or 0.08%, at 34,339.00 and the S&P 500 (.SPX) was up 5.61 points, or 0.13%, at 4,193.74. The Nasdaq Composite (.IXIC) was up 54.62 points, or 0.40%, at 13,711.79.
Trading volumes could dwindle heading into the Memorial Day long weekend, which could aggregate price moves.
Cryptocurrency-related stocks including those in Riot Blockchain (RIOT.O)and Marathon Patent Group (MARA.O) rose 9.7% and 10.4% as bitcoin briefly climbed back above $40,000 for the first time this week. read more
Amazon.com Inc (AMZN.O) said it is buying MGM, the fabled U.S. movie studio home to the James Bond franchise, for $8.45 billion, giving it a huge library of films and TV shows and ramping up competition with streaming rivals led by Netflix (NFLX.O) and Disney+. read more
Drug retailers such as Walgreens (WBA.O), CVS Health (CVS.N) and Rite Aid Corp (RAD.N) shed 2% and 4% after a report Amazon.com Inc (AMZN.O) is considering the launch of physical pharmacies in the United States. read more
Advancing issues outnumbered decliners by a 1.98-to-1 ratio on the NYSE and by a 2.50-to-1 ratio on the Nasdaq.
The S&P index recorded 16 new 52-week highs and no new low, while the Nasdaq recorded 41 new highs and 32 new lows.
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