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The S&P 500 and NASDAQ Composite popped to record highs Wednesday, adding to their strong 2024 performances, boosted by a lighter-than-expected U.S. consumer inflation report.
The Dow Jones Industrials popped 234.74 points to 39,792.85.
The S&P 500 surged 43.09 points to 5,289.72.
The tech-heavy index popped 160.73 points to 16,671.91.
Market leaders such as Nvidia popped upon the inflation reading, with shares of the GPU manufacturer rising nearly 3%. Tech titans Apple, Microsoft and Netflix all added more than 1%.
The CPI rose 0.3% for the month of April, less than the Dow Jones estimate for a 0.4% monthly increase. The gauge increased by 3.4% year over year, in line with expectations. Monthly and yearly numbers for core CPI, which excludes volatile food and energy prices, were both in line as well.
The report boosted expectations for Federal Reserve rate cuts in the near future. Fed funds futures trading data now suggests a 51.7% likelihood that the U.S. central bank will ease rates at its September meeting. This is up from Tuesday’s 44.9% chance of a rate cut the same month.
Prices for the 10-year Treasury rocketed, lowering yields to 4.36% from Tuesday’s 4.44%. Treasury prices and yields move in opposite directions.
Oil prices squeezed higher 10 cents to $78.12 U.S. a barrel.
Gold prices hopped $26.90 to $2,386.80.
