Inflation Vibes Prove Boon to Stocks - InvestingChannel

Inflation Vibes Prove Boon to Stocks

Stocks rose Tuesday after new inflation data showed price pressures slowed again in May, adding to investor optimism that the Federal Reserve could skip a rate hike when it next decides on policy this week.

The Dow Jones Industrials perked 145.79 points to conclude Tuesday at 34,212.12.

The S&P 500 soared 30.08 points to 4,369.01.

The NASDAQ index added 111.40 points to 13,573.32.

Oracle shares jumped 0.4% after topping Wall Street’s estimates for the fiscal fourth quarter. Shares of streaming giant Netflix climbed 2.9%.

A report Tuesday showed that the consumer price index in May increased 4% year over year, marking the slowest annual rate since March 2021. Following the report, traders increased their bets that the Fed will keep rates unchanged on Wednesday after hiking at 10 consecutive meetings. The latest odds gave a 99% chance the central bank would keep rates at the current target rate of 5% to 5.25%.

Prices for the 10-year Treasury plunged, raising yields to 3.83% from Monday’s 3.74%. Treasury prices and yields move in opposite directions.

Oil prices regrouped $2.05 to $69.17 U.S. a barrel.

Gold prices stumbled $14.30 to $1,955.40 U.S. an ounce.

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