THE S&P 500 and Nasdaq finished at fresh records on Wednesday following improved inflation data as the Federal Reserve kept interest rates level.
The broad-based S&P 500 rose 0.9 per cent to 5,421.03, while the tech-rich Nasdaq Composite Index jumped 1.5 per cent to 17,608.44, the third straight closing records for both indices.
The Dow Jones Industrial Average edged 0.1 per cent lower to 38,712.21.
The Fed left its key lending rate unchanged and penciled in just one rate cut this year, down from the three expected in March.
The move came after inflation rated at 3.3 per cent last month, down 0.1 percentage point from April, slightly below expectations.
Fed chair Jerome Powell welcomed the inflation data but added that the US central bank needs to see more “good inflation readings” before it gains sufficient confidence to consider cutting interest rates.
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Art Hogan from B Riley Wealth Management characterised the inflation report as “unambiguously good,” while viewing the market’s acceptance of fewer interest rate cuts as reflecting that investors are “likely willing to forgo rate cuts for better economic data.”
The Nasdaq led the major US indices, winning 1.5 per cent following another big gain by Apple after the tech giant unveiled new artificial intelligence offerings. Other large AI-focused companies such as Microsoft and Nvidia also gained.
Oracle jumped 13.3 per cent despite mixed earnings as analysts pointed to enthusiasm over new partnerships with Open AI and Google. AFP
