US Market Surges to Record Highs After Inflation Data

The US stock market experienced a remarkable surge on Wednesday, 15 May 2024, as all three major indexes closed at record highs. This surge was attributed to a slightly softer-than-expected consumer price index report, which raised investor hopes for potential Federal Reserve interest rate cuts in September. Additionally, weak retail sales data for April further fueled expectations that inflation may cool down in the coming months.

At the close of the trading day, the Dow Jones Industrial Average index jumped by 349.89 points, or 0.88%, reaching 39,908. The S&P500 index saw a gain of 61.47 points, or 1.17%, reaching 5,308.15. The Nasdaq Composite index also reached a new record high of 16,742.39 after increasing by 231.21 points, or 1.4%.

All 11 sectors of the S&P500 closed higher, with the information technology sector leading the way with a 2.29% increase. This was followed by gains in the real estate (1.69%), healthcare (1.44%), and utilities (1.41%) sectors.

In economic news, the Labor Department released a consumer price report showing a 0.3% increase in the consumer price index in April, slightly lower than the 0.4% increase in March. The annual rate of consumer price growth also slowed to 3.4% in April from 3.5% in March. The report indicated a similar deceleration in core consumer price growth.

Meanwhile, the Commerce Department reported that retail sales in the US remained virtually unchanged in April, following a 0.6% increase in March. Excluding sales by motor vehicle and parts dealers, retail sales edged up by 0.2% in April after a 0.9% jump in March.

In commodity news, crude oil prices slipped on Wednesday as the International Energy Agency (IEA) revised its forecast for 2024 oil demand growth. Brent crude futures fell 0.6% to $81.84 a barrel, while US West Texas Intermediate crude futures (WTI) dropped 0.6% to $77.52 a barrel.

Overall, the surge in the US stock market and the developments in economic and commodity sectors paint a positive picture for investors and traders alike. Stay tuned for more updates on this evolving market situation.