By John Towfighi, NCS
New York (NCS) — Stocks hit record highs Thursday after August inflation data largely matched expectations, reaffirming buyers’ hopes that the Federal Reserve will cut rates of interest in September.
The Dow rose 617 factors, or 1.36%, and closed at 46,108, crossing the 46,000-point mark for the primary time.
It’s a symbolic milestone for the blue-chip index, and emblematic of the inventory market’s persistent rise regardless of tariff uncertainty and indicators of weak spot within the financial system.
The broader S&P 500 rose 0.85%, and the tech-heavy Nasdaq gained 0.72%. All three main indexes closed at record highs.
Inflation information launched Thursday morning confirmed shopper costs ticked up in August. However, the rise in a core measure of inflation that excludes meals and vitality got here in in step with Wall Street’s expectations.
Markets cheered as information confirmed a comparatively in line inflation report that paves the way in which for the Fed to cut rates of interest this month.
“Thursday’s CPI was in line with expectations and will not derail the Federal Reserve’s expected rate cut at the September meeting,” Skyler Weinand, chief funding officer at Regan Capital, mentioned in an e mail.
While headline annual inflation ticked up, issues in regards to the job market are additionally elevated, that means the Fed will possible cut charges by a quarter-point in September, in line with Bill Adams, chief economist at Comerica Bank.
Data launched on Thursday confirmed one of many largest weekly will increase in jobless claims seen in additional than a yr.
Investors flocked to bonds due to indicators of a slowdown within the labor market. That pushed Treasury yields decrease: The 10-year Treasury yield fell to 4% and hit its lowest stage since April. Bond costs and yields transfer in reverse instructions.
Traders are pricing in a 95% likelihood the Federal Reserve will cut its benchmark curiosity rate by 1 / 4 level at its coverage assembly subsequent week, with a 5% likelihood of a jumbo half-point cut.
Elsewhere in markets, Warner Bros. Discovery shares (WBD) surged 29% after experiences that Paramount Skydance is making ready a bid for the corporate. Warner. Bros Discovery is NCS’s father or mother firm.
The-NCS-Wire
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