Dow, S&P 500, Nasdaq end at records as US inflation cools
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Traders work on the floor of the New York Stock Exchange, in New York City.
PHOTO: REUTERS
NEW YORK - Wall Street stock surged to fresh records on May 15, after data showed a moderation in US consumer prices in April, boosting the chances for Federal Reserve interest rate cuts.
All three major indices rocketed to fresh all-time highs after monthly US consumer prices came in slightly below expectations, with annual inflation at 3.4 per cent in April, down 0.1 percentage points from March.
The Dow Jones Industrial Average gained 0.9 per cent to 39,908.00, putting it back within striking distance of a first-ever close above 40,000 points.
The broad-based S&P 500 jumped 1.2 per cent to 5,308.15, while the tech-rich Nasdaq Composite Index advanced 1.4 per cent to 16,742.39, notching a second straight record.
Retail sales were flat in April, missing estimates for a 0.4 per cent increase.
The reports together “point to a cooling of inflation and economic growth, as well as an increase in the likelihood that the Fed will begin its rate-cutting cycle later this year,” said Mr Sam Stovall, chief investment strategist of CFRA Research.
US stocks rallied in the first quarter on expectations for interest rate cuts, but hit obstacles later in the spring as Fed officials pushed back the timeframe for easing.
Among individual companies, Dell surged 11.2 per cent after Morgan Stanley analysts lifted their price target on the technology company, highlighting its artificial intelligence offerings.
Boeing slumped 2.1 per cent after the Department of Justice said the company had breached a 2021 criminal settlement, potentially leading to criminal prosecution.
GameStop and AMC Entertainment tumbled following two days of gains that prompted talk of a revived “meme stock” craze. GameStop dropped 18.9 per cent, while AMC lost 20 per cent. AFP
