by Caroline Valetkevitch
NEW YORK (Reuters) – The New York Stock Exchange ended sharply higher on Tuesday, with the S&P-500 reaching a record, in the wake of Oracle’s gains and as data suggesting continued inflation in the United States have not dampened investors’ hopes that the Federal Reserve (Fed) will cut rates this year.
The Dow Jones index gained 0.61%, or 235.74% points, to 39,005.40 points.
The broader S&P-500 gained 57.30 points, or 1.12%, to 5,175.24 points.
The Nasdaq Composite advanced 246.36 points (1.54%) to 16,265.64 points.
After communicating solid results the day before, Oracle climbed 11.7% to reach an unprecedented peak, driven by the announcement of an imminent press release with Nvidia, one of the main beneficiaries of the craze for Wall Street for artificial intelligence (AI). The semiconductor manufacturer gained 7.2%. Data released during the day by the US Department of Labor showed that consumer prices accelerated in February, increasing by 0.4% after 0.3% in the month. previous.
“Investors are now comfortable with the idea that it’s not a question of when the Fed will cut rates, but rather by how much,” commented Oliver Pursche, vice president of Wealthspire Advisors, in the Connecticut.
“Whether it happens in May, as many initially hoped, or in May ultimately matters little,” he added. What matters “is that it will happen and a less restrictive environment is on the horizon.” The report on consumer prices in the United States only marginally affected expectations for rate cuts. Traders are betting 70% on a first decline in June, compared to 71% before the publication of the data, according to CME FedWatch.
Countering the trend of the day on Wall Street, Boeing declined by 4.3% following an article in the New York Times reporting the unfavorable results of audits of the 737 MAX production process. The aircraft manufacturer informed its employees via a memo that weekly checks would be carried out in each factory producing the aircraft.
(Written by Jean Terzian)
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