US equities gain after key inflation data

by Jonathan Adams

The S&P 500 surged nearly 1.2%, reaching a new all-time high, while the Nasdaq Composite climbed around 1.5% and the Dow Jones Industrial Average also saw a modest increase of about 0.6%

US equities experienced widespread gains on Tuesday following the release of key inflation data that exceeded expectations, influencing the anticipation of a Federal Reserve interest-rate cut.

The S&P 500 surged by approximately 1.2%, reaching a new all-time high, while the technology-focused Nasdaq Composite climbed by around 1.5% after two consecutive days of losses, primarily driven by a 7% increase in chip giant Nvidia’s stock. The Dow Jones Industrial Average also saw a modest increase of about 0.6%.

Additionally, Treasury yields rose, with the 10-year yield increasing by 5 basis points to hover around 4.15%.

Conversely, gold prices dropped by over 1%, trading close to $2,162.

Investors are analyzing the Consumer Price Index (CPI) release, a crucial data point for the Fed in determining its future policy decisions. While headline inflation met expectations with a 0.4% monthly increase in February, following a 0.3% rise in the previous month, the “core” CPI, which excludes food and energy prices, showed a 0.4% monthly rise and a 3.1% annual gain, surpassing estimates.

The CPI report holds significant weight as Fed officials have expressed the need for a clear indication of easing inflation before considering a reduction in interest rates from their current high levels.

Prior to the CPI release, S&P 500 traders were preparing for potential stock movements of 0.9% in either direction.

Meanwhile, bitcoin continued its remarkable rally, surpassing $72,000 earlier in the day. The substantial inflows into crypt currency assets have propelled the leading token to achieve an impressive gain of nearly 70% so far this year, leading optimists to forecast that bitcoin could potentially reach as high as $350,000 by the end of the year.

In terms of corporate developments, Oracle shares surged by approximately 12% on indications that the tech company is advancing in cloud computing through a collaboration with AI chip giant Nvidia.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Trading and Investment News. The information provided on Trading and Investment News is intended for informational purposes only. Trading and Investment News is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

Related Posts

    Sign up for our newsletter

    Get our latest downloads and information first. Complete the form below to subscribe to our weekly newsletter.

    © Copyright 2024-25
    Trading and Investment News.
    Managed By News Media International A Brand Of CAS Media Group Publishing Ltd whose registered office is – 12 Deer Park Road, Wimbledon, SW19 3TL.

    Latest articles