NASDAQ-Adv: 2,730 Dec: 1,493 NYSE-Adv: 2,825 Dec: 1,163
(Source: Nasdaq)
The benchmark S&P 500 Index (.SPX), opens a new tab and the Nasdaq (.IXIC), opens a new tab hit all-time highs on Wednesday after a smaller-than-expected rise in a key inflation metric bolstered hopes that the Federal Reserve will cut interest rates. rates this year.
The blue-chip Dow (.DJI) opens a new tab was poised to surpass the 40,000 mark for the first time, while the other two major indexes surpassed all-time highs reached in March. Tepid U.S. April consumer price data led traders to increase bets that the Federal Reserve will cut its policy rate in September and again in December.
"The first downward surprise in inflation since the start of the year will be a relief to lingering concerns that inflation was starting to trend higher again," said Seema Shah, chief global strategist at Principal Asset Management.
"It will inevitably be welcomed by the market as it puts the Fed's 2024 cuts back on the table."
Separately, U.S. retail sales remained unexpectedly stable in April as higher gasoline prices shifted spending away from other goods, indicating that consumer spending was losing momentum.
At 11:20 a.m. ET, the Dow Jones Industrial Average (.DJI), opens a new tab rose 261.81 points, or 0.66%, to 39,819.92, the S&P 500 (.SPX), opens a new tab rose 44.95 points, or 0.86%, to 5,291.63, and the Nasdaq Composite (.IXIC), opens in new tab, rose 160.59 points, or 0.97%, to 16,671, 77.
Stocks built on Tuesday's gains, when Federal Reserve Chair Jerome Powell's assessment of U.S. growth and inflation reassured investors after producer prices in April were higher than expected. expected.
Stocks have risen so far this year thanks to better-than-expected first-quarter earnings and expectations that the Federal Reserve will be able to cool inflation without hurting growth and eventually transition to cutting interest rates. .
Rate-sensitive real estate (.SPLRCR) - Opens new tab and technology stocks (.SPLRCT) - Opens new tab outperformed other sector indices with a 1.6% gain each.
Most mega-cap growth and technology stocks also rose, with Nvidia (NVDA.O) Opens a new tab leading gains.
Meanwhile, retail investor darling GameStop (GME.N) opens a new tab fell 31.7%, snapping this week's strong rally fueled by "Roaring Kitty" Keith Gill, a central figure behind the trading frenzy. the meme stocks of 2021, which he posted on the social media platform
Other meme stocks, such as AMC Entertainment (AMC.N) Opens a new tab and Koss Corp (KOSS.O) Opens a new tab, each fell 24%.
Issues that rose exceeded those that fell by a ratio of 3.07 to 1 on the New York Stock Exchange and 1.76 to 1 on the Nasdaq.
The S&P index recorded 64 new 52-week highs and no new lows, while the Nasdaq recorded 101 new highs and 47 new lows.
Source: Reuters (Reporting by Bansari Mayur Kamdar and Shristi Achar A in Bengaluru; Additional reporting by Ankika Biswas; Editing by Sriraj Kalluvila, Devika Syamnath and Pooja Desai)
