NEW YORK (AP) — The New York Stock Exchange’s bullish streak extended to a fourth day Thursday, following the latest indication that inflation is easing pressure on the economy.
The S&P rose 37.88 points, or 0.8%, to end at 4,510.04, registering its highest close since April 2022. The Dow Jones Industrial Average rose 47.71, or 0.1%, to 34,395. .14, and the Nasdaq Composite rose 219.61, or 1.6%, to end at 14,138.57. Big tech companies led gains on the day.
The S&P 500 is on pace to post its seventh week of gains in the last nine, after more data on the economy raised hopes that inflation is declining enough for the Federal Reserve to soon end its blistering streak. hikes in interest rates. Wholesale inflation slowed more than expected in June, and prices paid by producers were only 0.1% higher during the month than a year earlier. By comparison, last summer inflation was 11.2%.
The sharp rise in inflation has been the main reason investors fear a recession, due to how much the Federal Reserve has raised interest rates to control prices. High rates undermine inflation by sharply slowing the entire economy and hurting investment prices. They can also put certain sectors of the economy into trouble.
Traders are almost certain that the Federal Reserve will raise the fed funds rate at its next meeting in two weeks, to its highest level since 2001. But this week’s inflation data has also made one think. to the operators that this will be the last rise in rates in this cycle.
A report on Wednesday showed that the prices consumers paid in June were 3% higher than the previous year, down from inflation of more than 9% last summer. It has been a “cool summer breeze”, as described by economists at Deutsche Bank.
The yield on the 10-year Treasury fell from 3.86% to 3.76%.
Associated Press writers Yuri Kageyama, Matt Ott and Zen Soo contributed to this report.
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2023-07-13 22:16:55
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