Stocks were acquired on Tuesday after the release of the latest inflation data for the US, with Dow Jones Industrial Arage over 500 points, with both the S&P 500 and the NASDAQ composite being framed towards record highs.
summary
- U.S. stocks have risen as investors responded to the latest inflation data.
- The S&P 500 broke above 6,400, appearing to surpass this mark for the first time.
- The Dow Jones industrial average and the Nasdaq also rose.
The Dow Jones industrial average rose nearly 500 points, and the S&P 500 scored 1.1%, signaling stock with a fresh bullish flip.
With the blue chip and benchmark index jumping, the market allowed Nasdaq composite to add more than 1.3% to close to fresh records of over 6,400 and 21,600, respectively.
Stock rises after CPI data
Wall Street has surged after the Bureau of Labor Statistics released its Consumer Price Index Report, with inflation steady at 2.7% year-on-year.
CPI reads showed a price increase that coincides with the June number. However, “core” inflation, a measure to rule out volatile food and energy costs, rose 0.3% in July to 3.1% year-on-year, surpassing the 2.9% seen in June.
Despite the core CPI, optimism that the Federal Reserve will cut prices in September helped boost stock prices. The bet on the central bank cut rate in September jumped to odds of 94%.
Aside from reading the CPI, investors are likely to be even more bullish in the next economic data release, with the report’s producer price index set on Thursday, August 14th, with retail sales data scheduled for the next day.
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Other market factors
Corporate revenue and tariff-related news remains a prominent factor for investors. President Donald Trump signs another 90-day suspension on major tariffs in China has a bright market as trade remains in the work.
The S&P 500’s over 6,400 rally and the march to the new peak of Nasdaq is largely catalyzed by the profits of high-tech stocks.
Analysts point out that the top 20 shares on the benchmark index are rebounding by more than 40% compared to 27.9% of other companies. Top drivers of out-performing high-tech stocks include the artificial intelligence sector, with AI supporting NVIDIA, Microsoft, Apple, Alphabet and others to record significant profits.
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