Wall Street closes in green after the inflation data
Wall Street closed in positive territory this Thursday. The selective S&P 500, one of its leading indicators, registered a new record. It followed the highest inflation data in the United States since 2008.
According to data at the close of the NYSE session, the S&P 500 increased by 0.47% or 19.63 points and stood at 4,239.18.
Meanwhile, the Dow Jones Industrials advanced by 0.06% or 19,10 points, up to 34,466.24.
The Nasdaq Composite Index, trading the major tech companies, rose by a solid 0.78% or 108.58 points to 14,020.33.
By sectors, the highest gains were led by health companies, real estate, and technology. The most affected were financial companies.
Wall Street reacted to mixed data on the US economy by buying. As a result, the S&P 500, the market’s broadest indicator, lifted to an all-time high after a month of swings.
Inflation in the US was interpreted as temporary
On the one hand, the consumer price index increased by 0.6% in May, placing year-on-year inflation at 5%. It’s the highest registered in the country since August 2008.
The rise in inflation, which increased fears last month over the possibility that the Federal Reserve would begin its withdrawal of stimulus, was interpreted this time as temporary.
Adam Crisafulli, an analyst at Vital Knowledge, assumes that CPI will not change the narrative drastically. There still are indications that the rise in inflation will subside in the coming months.
After the news, the yield on the 10-year Treasury bond increased slightly. However, it ended up falling to 1.44%.
On the other hand, the weekly number of applications for unemployment benefits fell to 376,000 last week. It is the lowest figure over the previous 15 months.
Among the thirty values of the Dow Jones, the advances of Walgreens (3.52%), Merck(MSD)(2.92%), Amgen (2.14%), and Cisco (1.87%) stood out.
The most significant losses were for Caterpillar (-3.84%), Goldman Sachs (-2.45%), and JPMorgan (-1.52%).
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