On Wednesday, Wall Street's key indexes hit records. S&P 500 and Nasdaq 100 rose over 1%, led by tech stocks posting a good CPI report.
Wall Street's three major indexes notched record closes on Wednesday with the S&P 500 the Nasdaq 100 both advancing more than 1%. Technology stocks led the charge following an encouraging CPI report.
Other data released showed retail sales were unexpectedly flat in April as higher gasoline prices pulled expenditure away from other goods, indicating that consumer spending was losing momentum.
US stocks have rallied so far this year on buoyant first-quarter earnings and expectations that the Fed will be able to achieve a soft landing and eventually transition to cutting interest rates.
There were also positive signs on price pressures across the pond. The EU said that it estimated inflation to drop faster this year than expected as the impact of Red Sea trade disruption appeared overblown.
The region's Stoxx 50 rose by 0.4%, marking its eighth increase in the past nine trading sessions. However, Europe's economy has been slower to rebound from the pandemic compared to China and the US.
Many European countries are still faced with weak productivity as well as low levels of investment, high energy costs, ageing populations, shrinking workforces and falling working hours.
The DAX 40, the FTSE 100 and the CAC 40 all set new all-time highs overnight. Germany's benchmark index looks overbought according to the RSI reading – a sign of correction, with support from 50 SMA.
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2024-09-05