The stock market saw another day of gains on Wednesday, adding to the impressive rally from the prior session. Investors closely evaluated the latest round of inflation data, which continued to show a lack of significant price pressures. The October producer price index reported a decline in the headline figures, while the core reading, which excludes food and energy, experienced a modest 0.1% increase. This rise was lower than the 0.3% gain seen in September.
Tuesday witnessed an extraordinary surge in stocks, with the S&P 500 recording its largest one-day percentage gain since January 6th. Ultimately, the index reached a two-month high after investors interpreted a subdued consumer price index reading as a signal that the Federal Reserve’s rate-hiking cycle has come to a halt. Consequently, market participants began factoring in a sequence of rate cuts projected to occur in 2024.
As for current developments, preliminary data shows that the Dow rose approximately 164 points, or 0.5%, to close near 34,991 on Wednesday. Similarly, the S&P 500 observed a 0.2% increase, while the Nasdaq Composite gained 0.1%. These positive movements indicate continued momentum in the stock market.
Investors remain optimistic as the enticing upward trend persists, supported by a careful assessment of inflation indicators and the potential impact on monetary policy going forward.