S&P 500 hits record high as traders sidestep hotter-than-expected-inflation reading
stocksadvanced Thursday, pushing the S&P 500 to a record high.
- Investors pushed past a hotter-than-expected May
inflationprint of 5%.
- Stocks also found support as fewer Americans filed for jobless claims last week.
The S&P 500 climbed to a record high Thursday in a winning session for US stocks as investors appeared to embrace the Federal Reserve's signals that hot inflation readings will be temporary and that it will stick with economic support measures.
The broad-market index soared to a record high just under 4,240 and the
Stock indexes had been mixed early Thursday after the Labor Department said consumer prices in May rose 0.6%, a higher rate than expectations of 0.5%. Headline inflation jumped to 5% year over year, outstripping expectations of 4.6% from an Econoday survey of economists.
Separately, government data showed claims by Americans seeking unemployment benefits reached their lowest since the start of the coronavirus outbreak. New claims last week clocked in at 376,000.
Here's where US indexes stood at 4 p.m. on Thursday:
- S&P 500: 4,239.33, up 0.47%
- Dow Jones Industrial Average: 34,465.77, up 0.05% (18.63 points)
- Nasdaq Composite: 14,020.33, up 0.78%
Federal Reserve officials have signaled to market participants that they see inflationary pressures as transitory and that the central bank is unlikely to raise ultra-low interest rates before 2023.
"It is perhaps testament to how effective the Fed's adjustment in communication has been recently since today's [inflation] reading would likely have caused a very different reaction if it had come before the gentle shift in tone that has reassured investors about the responsiveness of Fed policy," said Chris Beauchamp, chief market analyst at IG, in a note.
Gold rose 0.4% to $1,895.38 per ounce. Long-dated US Treasury yields turned lower, with the 10-year yield down at 1.465% to its lowest since early March.
Oil prices rose, with West Texas Intermediate crude up by 0.5% at $70.28 per barrel. Brent crude, oil's international benchmark, was up 0.3%, at $72.42 per barrel.
Bitcoin climbed 4% to $38,000 before paring gains to trade around $36,665.80.
- A student who accidentally became a millionaire with a cult following after selling his expressionless selfies as NFTs says he feels confused
- Internship at Bureau of Police Research & Development: Checkout all the details including last date, eligibility and stipend
- One of the largest cryptocurrency swapping platforms just lost $1.3 million as users failed to update approvals
- Consumers expect healthcare sector to see an increased allocation in the 2022 budget as the pandemic rages on: Kantar report
- Bharat Electronics Limited is looking to fill up 247 posts with a maximum monthly salary of ₹55,000
- iPhone SE 3, new iPad and Macs — Here’s what to expect from Apple’s spring event this year
- There are huge discounts on Nykaa, Zomato and shares of other listed tech startups
- ICICI Bank shares are sulking with the rest of the market, but analysts say it could make a lot of money for investors