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Wall Street’s major averages climbed on Thursday as investors
cheered signs of cooling in U.S. inflation, Trend reports citing
Reuters.
The Dow Jones Industrial Average rose 216.96 points, or 0.64
percent, to 34,189.97. The S&P 500 added 13.56 points, or 0.34
percent, to 3,983.17. The Nasdaq Composite Index increased 69.43
points, or 0.64 percent, to 11,001.10.
Eight of the 11 primary S&P 500 sectors ended in green, with
energy and real estate up 1.87 percent and 1.09 percent,
respectively, outpacing the rest. Consumer staples dipped 0.79
percent, the worst-performing group.
The U.S. Labor Department reported Thursday that the country’s
consumer price index (CPI) fell 0.1 percent in December, in line
with the consensus, for a 6.5 percent year-on-year increase,
following a 7.1 percent year-on-year increase in November. The core
CPI, which excludes food and energy, rose 0.3 percent, also in line
with expectations, for a 5.7 percent year-on-year increase.
“Core CPI falling back below 6 percent would be a step in the
right direction, but inflation remains far above the 2 percent
target,” UBS analysts said, adding that “we continue to believe
that it’s too early for an imminent Fed pivot and the conditions
are not yet in place for a sustainable equity rally.”
Will Compernolle, senior economist at FHN Financial, said “the
Fed will still proceed cautiously as it monitors ‘sticky’ inflation
components like core services.”
The Federal Reserve has been raising interest rates since last
March in an effort to bring inflation under control.
Fed officials have reiterated this week that rates are likely to
remain at their peak level for some time before easing starts.
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