Nasdaq, S&P 500 Reach Record Closing Highs On Positive Reaction To Inflation Data
February 29 2024 - 4:32PM
IH Market News
Stocks fluctuated over the course of the trading session on
Thursday but largely maintained a positive bias before ending the
day mostly higher. The major averages all moved to the upside, with
the Nasdaq (NASDAQI:COMP) and S&P 500 (SPI:SP500) reaching new
record closing highs.
The Nasdaq and S&P 500 reached new highs for the session in
late-day trading before giving back some ground going into the
close.
The tech-heavy Nasdaq jumped 144.18 points or 0.9 percent to
16,091.92 and the S&P 500 climbed 26.51 points or 0.5 percent
to 5,06.27.
Meanwhile, the narrower Dow (DOWI:DJI) spent most of the day
bouncing back and forth across the unchanged line before closing up
47.37 points or 0.1 percent at 38,996.39.
The strength on Wall Street came following the release of a
highly anticipated Commerce Department report showing consumer
prices in the U.S. increased in line with economist estimates in
the month of January.
The Commerce Department said consumer prices rose by 0.3 percent
in January after inching up by a revised 0.1 percent in
December.
Economists had expected consumer prices to rise by 0.3 percent
compared to the 0.2 percent uptick originally reported for the
previous month.
Excluding food and energy prices, core consumer prices climbed
by 0.4 percent in January after edging up by a revised 0.1 percent
in December. The increase in core prices also matched
estimates.
Meanwhile, the report said the annual rate of consumer price
growth slowed to 2.4 percent in January from 2.6 percent in
December. The slowdown matched expectations.
The annual rate of core consumer price growth also slowed to 2.8
percent in January from 2.9 percent in December, in line with
estimates.
“The report was largely in line with economist estimates, which
was seen a relief for investors who were concerned about the
potential for hotter than expected inflation to start the year,”
said Sam Millette, Director of Fixed Income for Commonwealth
Financial Network.
The inflation readings are said to be favored by the Federal
Reserve, and the data generated some optimism about the outlook for
interest rates.
In other U.S. economic news, the Labor Department released a
report showing a bigger than expected increase in weekly jobless
claims, while a report from the National Association of Realtors
unexpectedly showed a sharp pullback by pending home sales in
January.
Sector News
Computer hardware stocks saw substantial strength the day,
resulting in a 3.3 percent spike by the NYSE Arca Computer Hardware
Index.
Pure Storage (NYSE:PSTG) led the sector higher, with the data
storage company soaring by 25.0 percent after reporting better than
expected fourth quarter results and providing upbeat guidance.
Significant strength was also visible among semiconductor
stocks, with the Philadelphia Semiconductor Index surging by 2.7
percent to a record closing high.
Gold stocks also turned in a strong performance amid an increase
by the price of the precious metal, driving the NYSE Arca Gold Bugs
Index up by 2.6 percent.
Housing, software and commercial real estate also saw strength
on the day, while networking stocks showed a notable move to the
downside.
Other Markets
In overseas trading, stock markets across the Asia-Pacific
region turned in a mixed performance on Thursday. Japan’s Nikkei
225 Index and Hong Kong’s Hang Seng Index edged down by 0.1 percent
and 0.2 percent, respectively, while China’s Shanghai Composite
Index surged by 1.9 percent.
The major European markets also ended the day mixed. While the
French CAC 40 Index fell by 0.3 percent, the U.K.’s FTSE 100 Index
inched up by 0.1 percent and the German DAX Index rose by 0.4
percent.
In the bond market, treasuries gave back ground after an early
advance but remained in positive territory. Subsequently, the yield
on the benchmark ten-year note, which moves opposite of its price,
dipped 2.2 basis points to 4.252 percent.
Looking Ahead
Trading on Friday may be impacted by reaction to the latest U.S.
economic data, including reports on manufacturing activity,
construction spending and consumer sentiment.
Source: RTTNEWS
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