S&P Hits High for Year on Easier-Than-Expected Inflation Number

Stocks rose Wednesday after new data raised hope that the Federal Reserve can bring down inflation without pushing the U.S. economy into a recession. The S&P 500 reached a new high for 2023 and its highest level since April 2022.

The Dow Jones Industrials gathered 86.01 points to conclude Wednesday at 34,347.43.

The S&P 500 hiked 32.90 points to 4,472.16

The NASDAQ index popped 158.26 points, or 1.2%, to 13,918.96.

Bank stocks jumped on Wednesday. Citigroup hiked 1.8% and Goldman Sachs saw shares climb 1.7%. Regional banks also saw gains, with Comerica adding 3.1%, and Zions Bancorporation jumping 2.8%.

The consumer price index rose 3% on a year-over-year in June. Economists polled by Dow Jones expected a 3.1% increase. Month over month, the index rose 0.2% last month, also less than forecast. On top of that, core CPI — which strips out volatile food and energy prices — also rose less than expected.

Prices for the 10-year Treasury were sharply higher, lowering yields to 3.87% from Tuesday’s 3.98%. Treasury prices and yields move in opposite directions.

Oil prices improved $1.19 to $76.02 U.S. a barrel.

Gold prices soared $26.40 to $1,963.50 U.S. an ounce.