US Stocks Gain Due To Softening Inflation
London: 16 November 2023 (TraderMade): US stocks closed marginally higher on Wednesday, buoyed by encouraging inflation figures that fueled optimism regarding the Federal Reserve's stance on interest rates.
The market had surged the previous day following a softer-than-expected consumer price index (CPI) reading, raising hopes that further rate hikes could be avoided.
Fresh data on Wednesday revealed the sharpest drop in producer prices in 3-1/2 years for October, primarily due to more affordable gasoline, providing additional evidence of diminishing price pressures.
Popular Indices Surge
- The Dow Jones Industrial Average rose by 1.79% (compared to Monday, 13 November) to 34,990.9 points (at about 7:36 AM GMT),
- The S&P 500 gained 1.96% to reach 4,502.6 points, and
- The Nasdaq 100 added 1.94% to close at 15,805.5 points.
Investors closely monitored the meeting between the US President Joe Biden and Chinese leader Xi Jinping. Market participants hope the talks could ease tensions on various fronts, including military conflicts, drug trafficking, and artificial intelligence.
Aiming to avert a government shutdown, the US House of Representatives passed a temporary spending bill, gaining support from lawmakers across party lines. The Senate and Republican-controlled House must pass legislation before midnight on Friday to secure continued funding for federal agencies.
