US Markets Make Strong Headway

Wall Street has enjoyed more solid gains, climbing for a fifth straight session and shrugging off fresh data showing higher inflation.

The Dow Jones rose 1.2 percent to 25,200. The S&P 500 was also up 1.2 percent to 2,731, while the Nasdaq advanced 1.6 percent to 7,256.

The gains suggest Wall Street is beginning to regain confidence after a selloff earlier this month briefly sent indices down more than 10 percent which is considered correction territory.

"The correction has seemed to end quickly," said Alan Skrainka, chief investment officer at Cornerstone Wealth Management.

The pullback was ignited after the January jobs report showed strong wage gains, which raised worries the Federal Reserve would accelerate interest rate hikes in response to increased inflation. But the market appears to have pivoted and dismissed this worry, at least for now.

The Producer Price Index, which tracks the cost of wholesale goods and services, rose 0.4 percent in January, matching analyst expectations, according to the Labour Department report released prior to the market open. (AFP)