On Wednesday, United States equities surged as investors celebrated fresh data indicating that inflation had increased last month, but less than projected.
The Nasdaq Composite skyrocketed 1.2%, while the S&P 500 jumped 0.9%. In addition, the Dow Jones Industrial Average traded 219 points higher, or 0.6%.
In June, the consumer price index increased by 3% on a year-over-year basis. According to Dow Jones economist polls, a 3.1% increase was expected. Furthermore, the index rose by 0.2% last month, which is also lower than the forecast. In addition, Core CPI, which excludes volatile food and energy prices, rose less than originally anticipated.
As per Betsy Stevenson, a professor of economics and public policy at the University of Michigan, who spoke to CNBC’s “Squawk Box” on Wednesday, “What we’re witnessing in this figure is a waiting game. However, we’re seeing it decline.”
Source (CNBC)
