Stocks on Wall Street closed higher on Monday as investors carefully analyzed inflation data to gain insights into the Federal Reserve’s future policies. The S&P 500 index rose by 0.1%, while the Dow Jones Industrial Average climbed 106 points (0.2%) and the Nasdaq Composite gained 0.3%. In a notable achievement, all three major indexes reached new intraday 52-week highs.
The consumer price index, a key indicator of inflation, showed a YoY increase of 3.1% and a MoM increase of 0.1%, aligning with economists’ expectations. This data provided reassurance to investors who hoped to finish the year strongly, with an ongoing winning streak for the Dow, S&P 500, and Nasdaq.
The S&P 500 and Dow achieved their highest levels since 2022, with the Dow settling at its highest point since January 2022. The S&P 500 has impressively surged by over 12% during its six-week run, reflecting strong investor confidence.
Market participants now eagerly await the Federal Reserve’s policy announcement, which is scheduled for Wednesday. They hope to discern any signals regarding potential interest rate cuts, as this could significantly impact market dynamics.
However, not all stocks performed optimally. Oracle shares suffered a decline of over 11% after falling short of revenue expectations. This setback dampened investor sentiment towards the technology giant.
In addition, Macy’s stock dropped by 5% following a downgrade in its rating by Citi to “sell.” This move by the prominent financial institution raised concerns about the department store’s future performance.
As the week progresses, the stock market remains poised for fluctuations and potential developments. Investors and traders alike are keeping a close eye on economic indicators and corporate earnings reports as they strive to make informed investment decisions.
