U.S. Stocks Rally Post Positive Inflation Data
On Tuesday, U.S.stocks soared due to the latest inflation statistics. The Dow climbed over 500 points. Meanwhile, the S&P 500 and nasdaq approached new highs.
The S&P 500 exceeded 6,400,aiming for its first close ever above this level. The Dow and Nasdaq also increased significantly. The S&P 500 gained 1.1%, indicating bullish momentum. Similarly, the Nasdaq added 1.3%, closing near record highs.
The surge followed the Bureau of Labor Statistics’ consumer price index report. Annual inflation stayed at 2.7%. While “core” inflation rose 0.3% in july to 3.1% YoY.
This data, alongside expectations of a Federal Reserve rate cut in September, boosted investor sentiment. The likelihood of a rate cut reached 94%, driving the markets upward.
Additional economic reports, such as the producer price index on Thursday and retail sales data the next day, coudl further influence trading.
Corporate earnings and tariff issues still impact investor decisions. President Trump’s extension of tariffs activated positive trading sentiments.
Tech stocks propelled the S&P 500 past 6,400 and the Nasdaq to new heights.
The top 20 S&P 500 stocks showed a 40% recovery since their low point,outpacing other companies.
AI drove growth for firms like Nvidia, Microsoft, Apple, and Alphabet.
This stock rally reflects steady inflation, potential Fed action, and tech advancements’ combined impact.
