Wall Street rises on higher inflation

by Jonathan Adams
Wall Street

The Dow Jones Industrial Average (DJIA) closed 0.06% higher at 34,466.24, while the S&P 500 gained 0.47% to 4,239.18, and the Nasdaq Composite rose 0.78% at 14,020.33

Wall Street stocks closed above the waterline on Thursday, as market participants rifled through a consumer price index that revealed a bigger-than-expected increase in price pressures and a fresh batch of jobless claims data.

The Dow Jones Industrial Average closed 0.06% higher at 34,466.24, while the S&P 500 gained 0.47% to 4,239.18, and the Nasdaq Composite rose 0.78% at 14,020.33.

The Dow ended 19.1 points higher on Thursday, reversing losses recorded in the previous session, as the S&P 500 hit new record highs.

Thursday’s primary focus was the monthly consumer price index, which revealed inflation in the US bounded ahead in May with big gains evident across nearly all categories of products and services.

According to the Department of Labor, headline consumer prices jumped at a month-on-month pace of 0.6%, pushing the annual rate of increase from 4.2% for April to 5.0%.

Economists had forecast CPI to increase by 0.4% on the month and 4.6% on the year.

In addition to the CPI reading, the number of Americans lining up for state unemployment benefits declined for a sixth consecutive week, with initial claims dropping by 9,000 to 376,000 in the week ended 5 June, according to the Labor Department.

Significantly, continuing claims for ongoing state unemployment fell 258,000 in the week ended 29 May to 3.5m – the largest decline since mid-March.

In the corporate space, UPS stock closed the day 1.06% higher, following an upgrade from analysts at JPMorgan.

Shares in reopening plays were mixed by the close, with Boeing ascending 0.11%, while Delta Air Lines reversed earlier gains to close the session 0.52% lower.

‘Meme stock’ GameStop tumbled 27.16%, after tapping former Amazon executive Matt Furlong for CEO and revealing that sales had surged 25% last quarter.



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