Wall Street Records Historic Highs for Stock Market as US Inflation Rate Drops to 3.4%
By Thea Felicity
May 15, 2024 01:25 PM EDT
© 2024 Copyright Venture Capital Post. All Rights reserved.
May 15, 2024 01:25 PM EDT
(Photo : Michael M. Santiago/Getty Images)
In a live update from The Guardian, Wall Street celebrates reaching unprecedented highs following news of a decline in US inflation to 3.4%.
The positive market sentiment is fueled by a report showing a slowdown in US consumer price inflation to 3.4% in April, providing some relief after several months of consistently high readings.
Although inflation remains elevated, the slight improvement from March's 3.5% rate is encouraging.
Stocks that typically benefit from lower interest rates led the charge, with real estate and utility sectors climbing by 1.5% and 1.4%, respectively. Homebuilders rallied on hopes of reduced mortgage rates, with Lennar and D.R. Horton posting gains of over 3.6%.
The S&P 500 surged by 0.8% midday, surpassing its previous peak set in March, while the Nasdaq composite continued its upward trend, climbing by 1%. Simultaneously, the Dow Jones Industrial Average gained 250 points, a 0.6% increase.
Moreover, tech giants and high-growth stocks rode the wave of optimism, with Nvidia spearheading the S&P 500's ascent with a substantial 3.4% increase.
AP News reported that analysts believe the recent slowdown in inflation and expectations of action from the Federal Reserve have revived the stock market.
However, there are worries about possible weaknesses in consumer spending, particularly evident in lower-than-expected growth in retail sales, which could challenge economic stability.
While Wall Street celebrates due to easing inflation worries, global markets are showing a mixed trend, with stocks in Shanghai declining by 0.8% after China's central bank decided to keep key lending rates unchanged.
READ MORE: Joe Biden's Chances of Winning Reelection Damped by Persistent Inflation Fears, New Poll Shows
© 2024 VCPOST.com All rights reserved. Do not reproduce without permission.