S&P 500 posted its fifth consecutive winning day

The Dow Jones Industrial Average increased slightly in U.S. inflation data following the release of more positive U.S. data on Wednesday. The 30-stock Dow increased by 242 points, or 0.61%, to close the day at 40,082 index points.

The S&P 500 had its fifth consecutive winning day, closing at 5,455 points, up 0.038 percent. Recovering from earlier losses, the Nasdaq Composite closed at 17,192.60 index points, up just 0.03%.

A comprehensive picture of the state of the economy and additional confirmation of the possibility of an interest rate cut at the central bank’s September meeting was what investors had been hoping for from the CPI reading. Such an affirmation came to light yesterday.

The Bureau of Labor Statistics reported consumer prices rose by 2.9 percent YoY, the lowest reading since March 2021, down from 3 percent in June. Over a month, prices increased by 0.2 percent. According to a Dow Jones survey, economists predicted a 0.2 percent increase from the previous month and a 3 percent gain on an annual basis.

Core inflation, which deducts energy and food from the headline figure, increased by 0.2 percent for the month, which was also expected. The report was released the day after lower-than-expected wholesale inflation data lifted stocks. The Dow increased by roughly 1%. The Nasdaq gained two percentage points, while the S&P 500 increased by one point.

Alphabet, the parent company of Google, saw a 2 percent decline in shares after reports that the U. S. Department of Justice was considering dismantling the massive technology company.

All three major averages are higher than their August. 2 closing levels, the session before the August 5 global market sell-off., partly connected to worries about economic expansion and the unraveling of the yen carry trade. At the central bank meeting in September, expectations for a quarter- or half-percentage-point reduction are roughly split down the middle in the futures market pricing. based on the CME FedWatch Tool, 17–18. Traders anticipate a shift in basis points by year’s end.