Despite US inflation, Wall Street ends up, S&P 500 at record
The New York Stock Exchange finished slightly higher Thursday despite high US inflation in May, with the S&P 500 index ending at a record high.
According to final results, the Dow Jones index has gleaned 0.06% to 34,466.24 points and the Nasdaq, with strong technological coloring, passed the 14,000 point mark for the first time since the beginning of May, to 14,020.33 points , climbing 0.78%.
As for the S&P 500 extended index, it broke its May 7 record by almost seven points to 4,239.18 points, up 0.47%.
“This is another case where we have big news on inflation and nobody cares, the market has looked elsewhere,” said Karl Haeling of LBBW ironically.
The rise in consumer prices in May in the United States accelerated to 5% over one year, the highest in 13 years, according to the CPI index released Thursday. Over the month, it stood at + 0.6%, a little more than analysts’ forecasts of + 0.4% but less than the previous month (+ 0.8%).
Despite this acceleration in consumer prices, which usually causes bonds to sell off which pushes their rates up, yields on 10-year Treasury bills fell to their lowest since early March, at 1.4385%. around 8:30 p.m. GMT. And stocks recovered.
Investors believe that the month of May should represent the “peak of inflation”, asserts Karl Haeling while the Central Bank (Fed) keeps repeating that the acceleration of inflation should be temporary. The Fed is holding a monetary meeting next week.
“From now on (inflation) should start to slow down. The consensus of economists predicts that in a year, the CPI index will be between 2% and 2.2%, ”he added.
Investors also paid attention to the meeting of the European Central Bank (ECB), which on Thursday maintained its accommodative monetary policy and considers it “premature” to tighten the financing conditions of the economy in the euro zone.
Nasdaq technology stocks pulled the indexes modestly up along with health sector stocks.
Tesla, which launched a luxury version of its Model S sedan, called Plaid, on Thursday, rose 1.89%. Amazon stock gained 2% to $ 3,349. The anti-Covid 19 vaccine maker Pfizer remained on the previous day’s momentum, gaining 2.19%.
For the second consecutive session, the favorite stocks of online stock marketers faltered such as the video game stores GameStop (-27.16%), the movie theater chain AMC (-13.23%) or the online service provider of health Clover Health (-15.25%).