by Sinéad Carew and Bansari Mayur Kamdar
(Reuters) – The New York Stock Exchange ended sharply higher on Wednesday, its three main indices setting records, while the less significant increase than expected in a key indicator of inflation in the United States reinforced hopes to see the Federal Reserve (Fed) lower interest rates.
The Dow Jones index gained 0.88%, or 349.89 points, to 39,908.00 points.
The broader S&P-500 gained 61.47 points, or 1.17%, to 5,308.15 points.
The Nasdaq Composite advanced 231.21 points (1.40%) to 16,742.39 points.
While the Nasdaq set a record for a second consecutive session, the S&P-500 and the Dow Jones exceeded the peaks reached at the end of March. The Dow moved closer to the threshold of 40,000 points, which it has never crossed.
Wall Street remained on Tuesday’s positive momentum stemming from reassuring comments from Fed Chairman Jerome Powell about the US economy, inflation and the outlook for monetary policy.
The report on consumer prices in April in the United States, published during the day and showing a less significant increase than expected, fueled the hope of a decline in inflation and reinforced among traders the hypothesis of two rate cuts this year – in September and December.
“It’s a relief not to have had a fourth consecutive report on consumer prices that was higher than expected,” commented Carol Schleif, director of investments at BMO in Minneapolis.
“It is clear that markets appreciated that the inflation data was softer. Retail sales were lower than expected. The economy has come out of its turmoil and is operating at a more sustainable pace,” he said. -she adds.
A report also released today showed that retail sales in the United States remained unexpectedly stable in April, suggesting that consumer spending is stalling. The main Wall Street indices are up this year, driven by better-than-expected corporate results and the prospect of the Fed succeeding in reducing inflation without stopping economic growth, before sooner or later lowering rates. . Among the major sectors of the S&P-500, technology and real estate were the best performers during today’s session.
On the value side, note the 3.6% increase in Nvidia, which helped to lift the S&P-500, as well as Super Micro Computer, which jumped 15.8%, also benefiting from investor enthusiasm. for artificial intelligence (AI).
Other technology stocks, such as Microsoft and Apple, rose.
(Written by Jean Terzian)
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