The Dow surged 600 points after the latest core inflation report indicated a slowdown, bolstered further by strong banking earnings.
All three of the US market averages (^DJI, ^IXIC, ^GSPC) fell by over 1.5% each — the Nasdaq Composite and Dow Jones Industrial Average both declined by 1.63% — in response to December's jobs data reported this morning.
The Dow fell over 500 points on Friday morning after new job reports surpassed expectations, and the Federal Reserve indicated that interest rate cuts may be postponed. Additionally, inflation remains a concern and is anticipated to stay high.
Wall Street analyzed the cooler-than-expected producer price index for December on Tuesday and looked ahead to the consumer price index report on Wednesday.
The better-than-expected data sent the blue-chip Dow Jones Industrial Average surging more than 700 points, or 1.7%, as investors felt renewed confidence that the Fed will cut rates multiple times this year. In recent trading, fed-fund futures showed the chances of more than one cut rising to 46%, from 35% on Tuesday, according to CME Group data.
Stocks surged on Wednesday after the latest consumer price index report showed core inflation unexpectedly slowed in December.
The moves come as Wall Street is gearing up for December's nonfarm payrolls reading, which is scheduled to come out at 8:30 a.m. ET on Friday. Economists polled by Dow Jones expect to see an increase of 155,000, less than the gain of 227,000 in November's reading. Additionally, the unemployment rate is projected to remain at 4.2%.
The Dow Jones Industrial Average (DJIA) avoided most of Monday’s broad-market declines as investors reaffirmed their bullish outlook on the long-run tech sector rally. The Dow gained roughly 100 points to kick off the trading week, while the other major equity indexes shed weight.
US stocks gave up early gains to end mixed. Investors await key consumer inflation data and the start of earnings season on Wednesday.
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U.S. stocks were surging on Wednesday morning as Treasury yields fell after core inflation data came in below expectations, boosting bets that the Federal Reserve will still be able to cut interest rates this year.
The Dow Jones Industrial Average (DJIA) climbed around 750 points at its peak on Wednesday, pushing into the bullish side to pass back through the 43,000 handle before getting hung up on the 50-day Exponential Moving Average (EMA). Equity markets are tilting firmly into the bullish camp after a key core inflation gauge ticked slightly lower.