On Wednesday, all three major indices of Wall St. had closed out the session with small gains amid mixed market participants’ response on US Consumer Price Index data that came in well in an alignment with an analysts’ forecast.
In point of fact, in the day’s marginal gains in all three key indices of Wall Street were almost entirely prompted by a US Labor Department report that had shown US Consumers Prices Index rose 0.5 per cent in December following a pick-up of 0.8 per cent in November, well in line with an analysts’ estimate of a 0.4 per cent gain in December.
On top of that, according to Labor Department data, Americans’ spending on consumers goods and services soared by a whopping 7.0 per cent over past twelve months through December compared to the same time a year earlier, marking off the biggest annual rise in CPI since 1982, which also had met analysts’ estimates while fending off investors’ optimism of a rate-hike by March 2022 what eventually helped major Wall Street stock indices eke out marginal gains amid a 39-year peak CPI alongside a rapid rise in Omicron cases.
Wall St. rises as 10 out of 11 S&P sub-indices end in black after CPI data
Citing statistics, in the day’s Wall St. closing bell, trade-sensitive Dow added 0.11 per cent to 36,290.32 and benchmark S&P 500 gained 0.28 per cent, while tech-heavy Nasdaq rose 0.23 per cent to 15,188.39.
Meanwhile, addressing to a lower than anticipated US CPI in 2021, a global market strategist in Ameriprise Financial, Troy, Michigan, Anthony Saglimbene said, “Investors were bracing for even higher figure in inflation than what we actually saw.
As bad as the number is and as much inflationary pressure that's in the economy there was a little relief in that. Today's inflation report validates the Fed trajectory and means they don't have to be any more aggressive than is already priced in. ”