Dow rises 220 points to new record after inflation report is not as bad as feared
The Dow Jones Industrial Average and the S&P 500 rose on Wednesday after inflation jumped, but not by quite as much as investors feared when stripping out volatile food and energy prices.
The 30-stock Dow gained 220.30 points, or 0.6%, to 35,484.97 to close at a new record. The index was lifted by names like Caterpillar and Home Depot. The S&P 500 traded up 0.2% to 4,447.70, also notching an all-time high. The technology-heavy Nasdaq Composite traded over 0.1% lower to 14,765.14.
July’s Consumer Price Index released Wednesday showed prices jumped 5.4% since last year, compared to expectations of 5.3%, according to economists surveyed by Dow Jones. The government said CPI increased 0.5% in July on month-to-month basis.
But investors were concentrating on the core rate of inflation, which could signal inflation will remain tempered and the economy will remain strong. CPI, excluding energy and food prices, rose by 0.3% last month, below the 0.4% increase expected. Core prices still jumped 4.3% on a year-over-year basis.
European stocks close higher on U.S. inflation data; Meggitt up 16% on takeover bid
European stocks closed higher on Wednesday as data out of the U.S. offered a tentative sign that inflation may have peaked.
The pan-European Stoxx 600 provisionally closed up by 0.4%, with construction and materials adding 1.1% to lead gains with most sectors and major bourses in positive territory.
Reference: CNBC
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