The S&P 500 Index hits a record closing high after months

Wall Street stocks closed higher on Thursday. The Standard & Poor’s 500 Index (S&P 500) hit a new closing high. The economic data supports the Fed’s statement that the current wave of rising inflation will be temporary.

All three major U.S. stock indexes rose, and the market-leading large stocks ranked Nasdaq (.IXIC) at the top. However, economically sensitive transportation stocks (.DJT) and small stocks (.RUT) ended negatively.

The Standard & Poor’s Index rose nearly 20 points or 0.5% on Thursday, exceeding 4,239 points, and set a closing high of 4,232 since May 7.

At the same time, the Dow Jones Industrial Average rose less than 0.1% to 34,466 points, which is still about 0.9% lower than its latest high on May 7.

The Nasdaq index, which is dominated by technology stocks, rose 0.8% but was still 0.5% below the February record. The index has underperformed the market in recent months.

Consumer prices in May rose at the fastest rate since the summer of 2008

On Thursday, the U.S. Department of Labor reported that Consumer prices surged as the economy recovered from the recession triggered by the pandemic.

The consumer price index represents a basket that includes food, energy, groceries, and a range of commodities.

Consumer prices rose by 0.6% between April and May and increased by 5% from 12 months to May. IT is the highest annual rate in 13 years, exceeding economists’ expectations.

Worries about soaring inflation weighed on the stock market last month

Investors feared that price increases would increase company costs, trigger interest rates. They expected the Fed to cancel a loose monetary policy.

Many economists also said that the soaring cost of used cars this month may distort inflation readings.

According to the U.S. Bureau of Labor Statistics, the prices of used cars and trucks have risen by more than 7%. It accounts for one-third of the total increase that month. The increase in used car prices may reflect temporary phenomena related to the pandemic and car supply.

Another report on Thursday showed that the number of initial jobless claims for the week ending June 5 was 376,000.

UPS shares rose about 1% after the upgrade of JP Morgan Chase. Boeing’s stock price rose. However, Delta Air Lines’ stock price fell.

Video game retailer and meme stock GameStop fell 27%. It declined even as the company appointed Matt Furlong, a former Amazon executive, as its next chief executive officer. Though, sales increased by 25% in the last quarter. The company also stated that it might sell up to 5 million additional shares.