On Friday, a slew of Wall St. stock indices had wrapped up the day in an affirmative territory with benchmark S&P 500 and trade-sensitive Dow snapping up their first weekly percentage gains following three straight weeks of declines, as investors seemed to have turned a blind eye to a stronger-than-anticipated inflation reading.
In point of fact, in the day’s decent rise in Wall St., was almost entirely galvanized by a US Fed remark that it would hold on to an accommodative monetary policy and a latest round of inflation-surge would more likely to be short-lived.
US Commerce Department said earlier in the day that the US Consumers Prices soared 0.7 per cent last month with a gauge of inflation scoring its highest annual gain since 1992 over last twelve months through April this year, however, an inflation-led rate-hike fear was largely subdued by US Fed Chair Jerome Powell’s comment that the US Central Bank would continue its monthly bond repurchase program and would hold on to a near-zero benchmark borrowing cost for an unforeseeable future.
If truth is to be told, over the recent weeks, investors were closely monitoring US inflation data and the US Fed policymakers’ comments on a daily basis in pursuit of clues for any kind of change in Central Bank’s monetary policy in a near term.
Wall St. gains as investors brush aside strong inflation data
Citing statistics, in the day’s Wall St. closing bell, trade-sensitive Dow added 0.18 per cent to 34,525.96 and benchmark S&P 500 rose 0.07 per cent to 4,203.80, while tech-heavy Nasdaq gained 0.09 per cent to 13,747.61.
On the week, benchmark S&P 500 and trade-sensitive Dow added 0.84 per cent each, while Nasdaq rose 0.91 per cent. Meanwhile, addressing to a volatile US inflation data over coming months, a senior portfolio manager at Globalt in Atlanta, Keith Buchanan said, “The data is going to remain volatile as well, the inflation data that we saw this morning with core PCE was a high print, but really not that far ahead of consensus. ”