US Market surges to record highs after inflation data

US stocks strongly surged on Wednesday, 15 May 2024, with all three major indexes closing at record highs, as risk sentiments underpinned after slightly softer than expected consumer price index report bolstered investors' hopes of the Federal Reserve interest rate cuts in September. Meanwhile, weak retail sales data for April also pushed up hopes that inflation will cool in the coming months.

At closing bell, the Dow Jones Industrial Average index advanced 349.89 points, or 0.88%, to 39,908. The S&P500 index climbed up 61.47 points, or 1.17%, to 5,308.15. The tech-heavy Nasdaq Composite index increased by 231.21 points, or 1.4%, to fresh record of 16,742.39.

All 11 S&P500 sectors closed higher along with S&P500 index. Information technology sector was top performer, rising 2.29%, followed by real estate (up 1.69%), healthcare (up 1.44%), and utilities (up 1.41%) sectors.

ECONOMIC NEWS: Labor Department released consumer price report on Wednesday showing its consumer price index increased by 0.3% in April after rising by 0.4% in March. Excluding food and energy prices, core consumer prices still rose by 0.3% in April after climbing by 0.4% in March. The report also said the annual rate of consumer price growth slowed to 3.4% in April from 3.5% in March. The annual rate of core consumer price growth decelerated to 3.6% in April from 3.8% in March.

Meanwhile, the Commerce Department released a separate report showing retail sales in the U.S. virtually unchanged in April after climbing by a downwardly revised 0.6% in March. Excluding sales by motor vehicle and parts dealers, retail sales edged up by 0.2% in April after jumping by 0.9% in March.

COMMODITY NEWS: Crude oil prices slipped on Wednesday as International Energy Agency (IEA) trimmed its forecast for 2024 oil demand growth. Brent crude futures were down 0.6% at $81.84 a barrel. US West Texas Intermediate crude futures (WTI) fell 0.6% to $77.52 a barrel.

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