Tamer-Than-Expected Inflation Data Leads To New Record Highs On Wall Street
15 Maio 2024 - 5:29PM
IH Market News
With traders reacting positively to closely watched consumer
price inflation data, stocks moved sharply higher during trading on
Wednesday. The major averages added to Tuesday’s gains, setting new
record closing highs.
The major averages saw further upside late in the session,
reaching new highs for the day. The tech-heavy Nasdaq
(NASDAQI:COMP) surged 231.21 points or 1.4 percent to 16,742.39,
the S&P 500 (SPI:SP500) shot up 61.47 points or 1.2 percent to
5,308.15 and the Dow (DOWI:DJI) jumped 349.89 points or 0.9 percent
to 39,908.00.
The rally on Wall Street came following the release of a Labor
Department report showing consumer prices in the U.S. rose by
slightly less than expected in the month of April.
The Labor Department said its consumer price index increased by
0.3 percent in April after rising by 0.4 percent in March.
Economists had expected consumer prices to climb by another 0.4
percent.
Excluding food and energy prices, core consumer prices still
rose by 0.3 percent in April after climbing by 0.4 percent in
March. The increase in core prices matched economist estimates.
The report also said the annual rate of consumer price growth
slowed to 3.4 percent in April from 3.5 percent in March, in line
with expectations.
The annual rate of core consumer price growth decelerated to 3.6
percent in April from 3.8 percent in March. The slowdown also
matched estimates.
Following yesterday’s hotter-than-expected producer price
inflation data, the report added to recently renewed optimism about
the outlook for interest rates.
“The CPI print offered a modicum of hope that inflation is
cooling, albeit slowly,” said Quincy Krosby, Chief Global
Strategist for LPL Financial.
She added, “The Fed will certainly need a series of cooler
reports for adjusting its rate easing timetable, but the CPI report
suggests that the path towards 2% is a bit less bumpy.”
Meanwhile, the Commerce Department released a separate report
showing retail sales in the U.S. unexpectedly came in flat in the
month of April.
The Commerce Department said retail sales were virtually
unchanged in April after climbing by a downwardly revised 0.6
percent in March.
Economists had expected retail sales to rise by 0.4 percent
compared to the 0.7 percent increase originally reported for the
previous month.
Excluding sales by motor vehicle and parts dealers, retail sales
edged up by 0.2 percent in April after jumping by 0.9 percent in
March. The uptick matched economist estimates.
Sector News
Computer hardware stocks saw substantial strength on the day,
driving the NYSE Arca Computer Hardware Index up by 4.1 percent to
a record closing high.
Shares of Dell (NYSE:DELL) soared after Morgan Stanley raised
its price target on the computer maker’s stock to $152 from $128,
calling it the “best way to play” the AI infrastructure
build-out.
Significant strength was also visible among housing stocks, as
reflected by the 3.4 percent surge by the Philadelphia Housing
Sector Index.
The index reached its best closing level in over a month even
though a report from the National Association of Home Builders
showed an unexpected slump by homebuilder confidence in May.
Semiconductor stocks also moved sharply higher over the course
of the session, with the Philadelphia Semiconductor Index jumping
by 2.9 percent to a two-month closing high.
Software, brokerage and commercial real estate stocks also saw
considerable strength, while airline stocks were among the few
groups that bucked the uptrend.
Other Markets
In overseas trading, stock markets across the Asia-Pacific
region once again ended mixed on Wednesday, with markets in Hong
Kong and South Korea closed for holidays.
Japan’s Nikkei 225 Index inched up by 0.1 percent and
Australia’s S&P/ASX 200 Index rose by 0.4 percent, while
China’s Shanghai Composite Index slid by 0.8 percent.
Meanwhile, the major European markets all moved to the upside on
the day. While the German DAX Index advanced by 0.8 percent, the
U.K.’s FTSE 100 Index and the French CAC 40 Index both edged up 0.2
percent.
In the bond market, treasuries have moved sharply higher in
reaction to the consumer price inflation data. Subsequently, the
yield on the benchmark ten-year note, which moves opposite of its
price, is down by 10.1 basis points at 4.344 percent.
Looking Ahead
Trading on Thursday may be impacted by reaction to another slew
of U.S. economic data, including reports on weekly jobless claims,
industrial production and import and export prices.
SOURCE: RTTNEWS
Dell Technologies (NYSE:DELL)
Gráfico Histórico do Ativo
De Mai 2024 até Jun 2024
Dell Technologies (NYSE:DELL)
Gráfico Histórico do Ativo
De Jun 2023 até Jun 2024