Dow, S&P 500, Nasdaq End At Records As US Inflation Cools

New York, (APP – UrduPoint / Pakistan Point News – 16th May, 2024) Wall Street stock surged to fresh records on Wednesday after data showed a moderation in US consumer prices in April, boosting the chances for Federal Reserve interest rate cuts.

All three major indices rocketed to fresh all-time highs after monthly US consumer prices came in slightly below expectations, with annual inflation at 3.4 percent in April, down 0.1 percentage points from March.

The Dow Jones Industrial Average gained 0.9 percent to 39,908.00, putting it back within striking distance of a first-ever close above 40,000 points.

The broad-based S&P 500 jumped 1.2 percent to 5,308.15, while the tech-rich Nasdaq Composite Index advanced 1.4 percent to 16,742.39, notching a second straight record.

Retail sales were flat in April, missing estimates for a 0.4 percent increase.

The reports together “point to a cooling of inflation and economic growth, as well as an increase in the likelihood that the Fed will begin its rate-cutting cycle later this year,” said Sam Stovall, chief investment strategist of CFRA Research.

US stocks rallied in the first quarter on expectations for interest rate cuts, but hit obstacles later in the spring as Fed officials pushed back the timeframe for easing.

Among individual companies, Dell surged 11.2 percent after Morgan Stanley analysts lifted their price target on the technology company, highlighting its artificial intelligence offerings.

Boeing slumped 2.1 percent after the Department of Justice said the company had breached a 2021 criminal settlement, potentially leading to criminal prosecution.

GameStop and AMC Entertainment tumbled following two days of gains that prompted talk of a revived “meme stock” craze. GameStop dropped 18.9 percent, while AMC lost 20 percent.

Leave a Comment

Your email address will not be published. Required fields are marked *

Scroll to Top