Shares of industrial and transportation companies rallied, hitting new highs for the year after comments from Federal Reserve Bank of Chicago President Austan Goolsbee quelled worries about the implications of a hotter-than-anticipated inflation report for interest-rate policy.
"[Tuesday's] inflation report caused an overreaction by investors," said Oliver Pursche, senior vice president of financial advisory Wealthspire.
"Investors that should know by now that when the Fed says, 'we're going to be patient in lowering rates that they mean it,'" Pursche said.
"What's happened over the last few weeks is the market's expectations of six or seven rate hikes that you saw in December has come down to four which is mch more in line with what the Fed is saying," Pursche added.
Shares of Great Lakes Dredge & Dock rose after the dredging-services provider reported a strong fourth-quarter profit, which got a boost from the gain on a canceled offshore-wind contract.
Miami freight concern Ryder System reported declines in both its top and bottom lines amid a challenging freight environment.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
02-14-24 1721ET
