Prior to the Federal Reserve’s June interest-rate announcement, stocks spiked on Wednesday following a slowdown in May inflation, which caused rates to plummet.
A 0.9% increase, or 334 points, was seen in the Dow Jones Industrial Average. The S&P 500 increased by 0.9% to set a new high. Gaining 1.1%, the Nasdaq Composite likewise reached a new all-time high.
In the previous session, records were set by the Nasdaq and the S&P 500. May’s consumer price index remained steady, defying the Dow Jones expectation of a 0.1% monthly increase.
The inflation metric grew 3.3% annually, which was below forecast and decelerated from the previous 3.4% rate of increase.
The core CPI, which does not include the fluctuating costs of food and energy, is released on a monthly and annual basis were also less than projected.
Source (CNBC)
