11.09.202513:41:47UTC+00US Stocks Rise after CPI

On Thursday, U.S. stocks experienced an upswing, with the S&P 500 rising by 0.3% to reach new record levels. Simultaneously, the Nasdaq increased by 0.3%, and the Dow Jones advanced nearly 200 points as investors assessed the latest U.S. Consumer Price Index (CPI) report. The data largely aligned with projections, revealing annual inflation accelerated to 2.9%, while core inflation remained steady at 3.1%. However, the headline CPI showed a monthly increase of 0.4%, surpassing the anticipated 0.3%. This report did not significantly alter market expectations for the Federal Reserve's anticipated rate cut next week, with investors virtually fully anticipating three reductions by the year's end. Meanwhile, initial jobless claims surged to a nearly four-year peak, underscoring indications of a softening labor market. The health sector emerged as the leading performer, whereas the energy and communication services sectors faced declines. Among megacaps, there were mixed results: Nvidia (up 0.4%), Apple (up 0.5%), Amazon (up 0.1%), and Tesla (up 0.6%) all saw gains, whereas Microsoft (down 0.2%), Meta (down 0.2%), Broadcom (down 1.2%), and Alphabet (down 0.6%) experienced losses.