US stock indices hit record highs amid slower-than-expected inflation
Date
5/16/2024 6:09:48 AM
(MENAFN) Wednesday witnessed a significant surge in US stock indices, with both the nasdaq Composite and Standard & Poor's 500 indexes reaching unprecedented levels, buoyed by favorable economic indicators. This surge followed the release of data indicating a slower-than-anticipated increase in the consumer price index (CPI) for April. The market responded positively to this development, as it bolstered expectations of a potential interest rate cut in September, in line with investors' projections.
In the United States, the inflation rate exhibited a deceleration during the month of April, aligning with forecasts and signaling a resumption of a downward trend in inflation at the onset of the second quarter. This trend further reinforced the financial markets' anticipation of a forthcoming reduction in interest rates. Data released by the US Department of Labor revealed that the consumer price index in the world's largest economy moderated to 3.4 percent on an annual basis in April, matching expectations. This figure marked a slight decline from March's 3.5 percent.
Against this backdrop, the Dow Jones Industrial Average recorded a modest increase of 56.99 points, or 0.14 percent, closing at 39,615.10 points. Similarly, the Standard & Poor's 500 index saw a gain of 16.58 points, or 0.32 percent, reaching 5,263.26 points. The Nasdaq Composite Index experienced the most substantial growth, rising by 89.96 points, or 0.54 percent, to hit 16,601.14 points.
The market's response underscores the importance of economic indicators in shaping investor sentiment and market dynamics. The slower pace of inflation in April served as a catalyst for renewed optimism, driving stock indices to historic highs as investors recalibrated their expectations regarding monetary policy and future interest rate adjustments.
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