The NYSE operates with strong increases this Wednesday, driven by the good inflation data in the US, which showed that in June the price rise moderated to 3% year-on-year.
The main index, the industrial Dow Jones, gained 0.8%, while the Nasdaq, technology-based and very sensitive to changes in interest rates set by the US Federal Reserve, rises 1.5% and the expanded S&P 500 index -of the 500 largest companies on the stock market- advances 1.1%.
In Tuesday’s session, Wall Street had closed with an optimistic rise ahead of the release of inflationary data. The Dow Jones rose 0.93%, the Nasdaq rose 0.55% and the S&P 500 gained 0.67%.
Inflation in the US: data for June lower than expected
US consumer prices rose modestly in Junewith its smallest annual increase in more than two years, a sign that inflation is still falling, but probably not fast enough to deter the Fed from raising interest rates again later this month.
The CPI rose 0.2% last month, after 0.1% in May, the Labor Department reported Wednesday. The CPI was boosted by increases in gasoline prices and rentals, which offset the decline in the price of used motor vehicles.
In the 12 months to June, the CPI rose 3.0%, the smallest year-on-year increase since March 2021, after the rise of 4.0% in May. Economists polled by Reuters had expected the CPI to rise 0.3% last month and 3.1% year-on-year.
Annual consumer prices have fallen sharply from the peak of 9.1% reached in June 2022, which was the biggest increase since November 1981, as the big increases of last year are dropped from the calculation. However, inflation remains well above the Federal Reserve’s 2% target, and the labor market remains tight.
The US central bank did not raise rates in June. The Fed has raised its key interest rate by 500 basis points since March 2022, when it embarked on its fastest monetary-policy tightening campaign in more than 40 years.
The improvement in the inflationary environment was underscored by a moderation in the rate of increase in core prices.
Excluding the volatile food and energy categories, the CPI rose 0.2% in June. It was the first time in six months that the so-called core CPI rose less than 0.4%. In the 12 months to June, the core CPI increased by 4.8%, after 5.3% in May.
Source: Ambito
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