11.09.202518:22:14UTC+00US Stocks Rally to New Highs Despite Hotter CPI

On Thursday, Wall Street's key indexes surged to new intraday highs as investors speculated that persistent inflation data wouldn't disrupt the Federal Reserve's anticipated interest rate reduction next week. The S&P 500 climbed 0.8%, surpassing the 6,588 mark for the first time. Meanwhile, the Dow Jones increased by over 600 points, breaking through 46,100, and the Nasdaq 100 rose by 0.6%. The Consumer Price Index (CPI) report for August indicated a 0.4% monthly increase in consumer prices, exceeding expectations, though the annual rate remained steady at 2.9%, aligning with predictions. Additionally, a rise in jobless claims by 27,000 to 263,000—the highest level since 2021—pointed to a cooling labor market. Investors are now almost certain of a quarter-point interest rate cut at the Fed's September 17 meeting, with growing speculation about a potential half-point reduction. Gains were widespread across various sectors, with materials stocks, healthcare, banks, consumer products, and semiconductor manufacturers leading the way. Notable companies such as Tesla (+5.4%), Micron (+8.5%), and Centene (+10.6%) recorded significant gains.