On Wednesday, the stock market data from the United States came up to be very promising for investors and stakeholders.
The reason behind the positive push in the stock market exchanges was the better-than-expected inflation results. The data shows that the inflation rates are going down, and in near future, they may fall lower.
As the inflation drop rate is better than expected, it has worked like a charm for the US stock market.
US Stock Market Performance
The data shows that the Dow Jones Industrial Average has experienced significant growth in the Wednesday stock market trading session.
It has reportedly grown by 1.6% during the Wednesday stock trading session. As a result, the Dow Jones has recorded a jump of 508 points.
Then it is the S&P 500 stock exchange that has jumped by 1.9%. With the recent jump, it has recorded the highest level it has managed to hit since May 2022.
Then there is the NASDAQ Composite which has also grown significantly. Compared to other stock exchange markets, NASDAQ Composite’s gains were much stronger than the rest of the exchanges.
According to data, the NASDAQ Composite has grown 2.5% in the Wednesday trading session.
Consumer Price Index Results for July
The data for the consumer price index (CPI) has just been posted by the Federal Reserve, which is quite promising.
The data posted by the Feds show that the consumer price index for the month of July has risen tremendously. The CPI has reportedly risen by 8.5% in the month of July, as compared to the same month in the year 2021.
Compared to the month of June, the consumer price index is considered flat.
Dow Jones Survey Results
The Dow Jones index had recently carried out a survey to know what number the economists had in mind for the country’s CPI.
The survey results suggested that the economists were expecting that the CPI would be somewhere between 8.7% and 0.2%.
Core Inflation Expectations
Even the core inflation rates are better than expected. Core inflation is something that strips out the energy prices as well as volatile food prices.
It was expected that the core inflation would also increase at a higher rate. However, it has increased at a much smaller rate than expected.
Federal Reserve’s Take from the Results
As promising results keep coming in, the Federal Reserve will surely take the recent CPI and NFP results into consideration in the September meeting.
They will keep these factors in their consideration when proceeding with hiking the interest rates.
Out of all the companies that have gained tremendously from the recent data releases, Netflix and Meta have gained the most. Their shares have surged by 4% and 5.7%, respectively.