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.
