Stocks experienced a significant boost on Tuesday, propelled by the latest inflation data showing a slowdown, Your Content has learned.
In May, consumer prices rose at an annual pace of 4%, marking a notable deceleration from April’s figures.
Additionally, Apple is poised to become the first company to achieve a valuation of $3 trillion, while Tesla shares have been on an impressive 13-session streak of gains.
Here are the key highlights for today:
- Stocks Rally in Anticipation of Federal Reserve Decision
- Inflation Continues to Decelerate. Examining the Details.
- Notable Market Movers: Oracle, Tesla, Apple, GameStop, and More
- Asian Stocks Surge as China Trims Interest Rates
- Bitcoin Surges Following US Inflation Data
Stocks Rally as Attention Shifts to the Federal Reserve
The stock market witnessed a surge on Tuesday as new inflation data came in lower than anticipated.
Market focus has now shifted entirely towards the upcoming interest rate decision by the Federal Reserve later this week.
The Dow Jones Industrial Average climbed 146 points or 0.4%, while the S&P 500 and Nasdaq Composite recorded gains of 0.7% and 0.8%, respectively.
In May, the Consumer Price Index reported a year-over-year increase of 4.1%, which was lower than the expected 4.2% and below April’s result of 4.9%. This outcome strongly suggests that the Federal Reserve will likely pause its interest rate hikes this month, providing relief for both the economy and the stock market.
The spotlight is now on the impending Federal Reserve announcement scheduled for Wednesday, as investors eagerly await to see if the decision will sustain the market’s upward momentum.
The S&P 500 has already surged over 20% since hitting its low point during the bear market in early October.
“The likelihood of a ‘Fed surprise’ on Wednesday diminished with the release of this morning’s CPI,” stated Mike Loewengart, Head of Model Portfolio Construction at the Morgan Stanley Global Investment Office, according Barrons.