US stock markets hit record highs amid moderate consumer price inflation
Date
5/16/2024 8:07:53 AM
(MENAFN) Yesterday, US stock markets opened on a positive note, witnessing record highs for both the nasdaq Composite and the Standard & Poor's 500 indexes. This surge came in the wake of April's consumer price index (CPI) report, which showed a lower-than-expected increase, reinforcing market expectations of a potential interest rate cut in September. The Dow Jones Industrial Average also experienced gains, rising by 0.14 percent to 39,615.10 points.
The Standard & Poor's 500 index saw an increase of 0.32 percent, adding 16.58 points to reach 5,263.26 points, while the Nasdaq Composite Index rose by 0.54 percent, climbing 89.96 points to 16,601.14 points. These upward movements signal investor optimism, driven by the prospect of monetary policy adjustments in response to the latest inflation data.
The US consumer price inflation for April exhibited a slight decrease, with the Labor Department reporting an annual CPI of 3.4 percent, down by 0.1 percentage point from the previous month. This aligns with the average forecasts of economists surveyed by Dow Jones Newswire and the Wall Street Journal. While the moderation in inflation is a positive development, it's important to note that both the annual and monthly CPI figures remain relatively high.
April's CPI report represents the first instance of a slowdown in annual inflation data since January, indicating a potential stabilization in price pressures. However, concerns persist regarding the persistence of elevated inflation levels and their implications for monetary policy decisions moving forward.
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