Wall St. ends higher; S&P 500 hits record closing high as CPI meets expectation

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Wall St. ends higher; S&P 500 hits record closing high as CPI meets expectation

On Friday, all three key indices of Wall St. had closed out the session sharply higher with S&P 500 hitting a record closing high, as a 39-year peak US CPI (Consumer Price Index) data that came in an alignment with analysts’ estimates, had little or no impacts on investors’ appetite for riskier assets.

In point of fact, in the day’s mass-scale upsurge in the Wall Street was almost entirely galvanized by a gyration towards growth stocks, as all three major indices had shelved weekly percentage gains. Nevertheless, earlier in the day, Government data had unveiled that US CPI (Consumer Price Index) had accelerated by the steepest pace in more than 39 years, gaining as much as 6.8 per cent over past twelve months through November, while US CPI rose 0.8 per cent on a monthly basis last month compared to a 0.9 per cent in October.

However, as US CPI reading came in an alignment with analysts’ expectation, investors’ uncertainty over a hawkish monetary policy from the US Federal Reserve had eased by a substantial margin with worries of a speed-up in bond-tapering program obliviated, which eventually had fared well for growth stocks.

Apart from that, in the latest flashpoint of an upbeat US quarterly earnings’ season, Oracle shares jumped after the tech giant had raised full-year profit outlook and Broadcom leapt following announcement of a share repurchase program, helping S&P 500 notch a record closing high.

Wall St. gains amid investors’ gyration towards growth stocks

Citing statistics, in the day’s Wall St. round off, trade-sensitive Dow rose 0.60 per cent to 35,970.93 and benchmark S&P 500 gained 0.95 per cent, hitting a record closing high of 4,711.65, while tech-heavy Nasdaq climbed 0.72 per cent to 15,630.60.

On the week, S&P 500 snowballed 3.60 per cent and Dow soared 3.86 per cent, while Nasdaq surged 3.39 per cent. Meanwhile, addressing to latest US CPI reading, chief executive officer of Horizon Investment Services in Hammond, Indiana, Chuck Carlson said, “It would appear that today’s reaction would indicate the markets were discounting the (CPI) reading.

The markets are always looking forward and perhaps today's reading is indicative of a peak versus a sustained level.