The Consumer Price Index (CPI) rose 0.1% last month compared with a 0.4% jump in April, and core inflation was unchanged at 0.4%, according to the Department’s report. of Labor of the United States.
In year-on-year terms, Headline inflation increased 4.0%, below estimates, reflecting decreases in the cost of energy products and services, including gasoline and electricity.
In this framework, the Dow Jones Industrial Average rose 145.79 points, or 0.4%, to 34,212.12; the S&P 500 index added 30.08 points, or 0.7%, to 4,369.01; and the Nasdaq Composite rose 111.40 points, or 0.8%, to 34,212.12.
“If the Fed was looking for data to say ‘Let’s pause in June,’ I think they got it today.”said Liz YoungHead of Investment Strategy at SoFi in New York.
What analysts expect
“Today’s drop in the inflation rate is likely to be welcomed by investors, but it remains stubbornly above the Fed’s 2% target,” he said. Richard Flynn, managing director of Charles Schwab UK. “The good news is that inflation ‘stickiness’ is now limited to fewer categories compared to earlier in the year.”
After the data, traders discounted by 93% that the Fed will keep interest rates in the range of 5% to 5.25% on Wednesday, while estimating a 60% probability of a 25 basis point hike in July, depending on the tool CME Fedwatch.
The S&P 500 is up 22% from the October 2022 lows, heralding a bull market, according to investors. The rally, helped largely by gains among mega-cap stocks such as apple inc, Nvidia Corporation and Tesla Inc.has recently been expanded to include sectors linked to the economy, such as energy and materials.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
