Wall Street: New Dow Jones and S&P 500 Index Records After July Inflation Report

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source: gulfnews.com

Wall Street: New Dow Jones and S&P 500 Index Records After July Inflation Report

According to provisional data at the close of the market, the Dow Jones advanced 0.62% or 220.23 points, to 35,484.90 integers, and the S&P 500 gained 0.25% or 11.02 points 4,447.77.

The Dow Jones Industrial Average and the S&P 500 closed at record highs on Wednesday, as data suggests that inflation in the United States could pick up. At the same time, sectors linked to economic growth advanced after the passage of a significant bill—infrastructure in the United States.

The Labor Department said the consumer price index rose 0.5% last month, after increasing 0.9% in June, marking the most significant drop in month-on-month inflation in 15 months, easing concerns on the possibility of runaway inflation.

As far as the stock market is concerned, this is a positive number, "said Steven Richieuto, chief US economist at Mizuho Securities USA LLC. The rhetoric about cutting, tightening rates, being defensive, and the number of inflation is not where it should be.

Investors have been very vigilant about inflationary pressures in recent months, concerned that a continued rise in prices will push the Federal Reserve to begin reducing its ultra-lax policy earlier than expected.

Kansas City Federal Reserve Chair Esther George said Wednesday that, with the US economy growing at a robust pace, "the time has come to reduce the adjustments."

Additionally, Dallas Federal Reserve Chairman Robert Kaplan said the central bank should announce its reducing bond purchases next month and begin in October.

Unofficially, the Dow Jones Industrial Average rose 221.22 points, or 0.63 percent, to 35,485.89 units, while the S&P 500 rose 11.11 points, or 0.25 percent, to 4,447.86 units.The Nasdaq fell 23.91 points, or 0.16%, to 14,764.18 points.

After Tuesday, the US Senate approved a bipartisan $ 1 trillion infrastructure package; the legislature began discussing an additional $ 3.5 trillion budget plan packed with new local programs. Still, disagreements within the Democratic Party threaten the size and scope of spending.

Shares of equipment maker Caterpillar Inc advanced and were the most significant boost from the Dow. Its peer Deere & Co also closed higher.