Wall Street pushed to new highs Friday after decreased inflation further boosted hopes that the Federal Reserve will keep lessening borrowing costs this year. The rally propelled all three major indexes into new intraday highs.
Based on real-time market data, the Dow Jones Industrial Average jumped 472 points to 47,207, the S&P 500 rose 53 points to 6,791, and the Nasdaq Composite rose 263 points to 23,205 by the end of the day. The S&P 500 went above 6,792 for the first time, and all three benchmarks were trading at or near record highs.
The consumer pricing statistics for September, which showed a small rise from the previous month, were what set things off. The U.S. Bureau of Labor Statistics (BLS) said that the Consumer Price Index rose 0.3% from August and 3.0% from the same month last year. The survey also said that gas prices went up 4.1% for the month while the core index, which does not include food and energy, went up 0.2%.
Institutional and individual traders saw the report as confirmation that inflation is easing sufficiently for policy-makers to stay on a rate-cut path without jeopardizing growth, reports the Bureau of Labor Statistics. The gains were broad-based: the NYSE Composite advanced to 21,717 and the Russell 2000 to 2,515, a sign of participation beyond mega-cap tech.
Background: The CPI report was delayed by a federal shutdown, yet collection for September concluded prior to the shutdown occurring, stated the Bureau of Labor Statistics. Energy prices was the largest contributor to the month’s advance and items such as motor-vehicle insurance and used autos moderated.
Investors will watch upcoming economic prints and the Federal Reserve’s next policy decision for confirmation that inflation progress continues and that rate cuts remain on track.
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