US Stock Markets Today: S&P 500, Dow, Nasdaq Hit Record Highs As Inflation Data Boosts Fed Rate Cut Bets
The main Wall Street indices rose on Friday to hit record highs after the latest consumer price index data indicated that the Federal Reserve could cut rates this year. The Dow Jones Industrial Average rose 565 points or 1.2%, the S&P 500 rose over 1%, and the Nasdaq Composite was up 1.3%. The S&P 500 on Friday crossed the 6,800 mark for the first time in history. In addition, the Dow is likely to secure its first close above the 47,000 level.
What Led to the Record Highs?
Minutes into the trade, the Dow Jones Industrial Average had risen 228 points or 0.5%, the S&P 500 was up 0.64%, and the Nasdaq Composite had gained 0.87%. The September CPI inflation rose 0.3%, taking the annual inflation rate to 3%, according to the Bureau of Labor Statistics. In addition, the headline inflation rate marked an uptick from 2.9% seen in August.
The CPI data could pave the way for the US Fed to cut rates in the meeting next week. As Scott Helfstein at Global X told Bloomberg, ‘Nothing in the inflation print should stop the Fed from cutting rates next week. Yes, prices are higher, but not enough to keep them from helping the economy.’
Market Reaction
In the early minutes of trading, nine of the 11 sectoral indices were trading in green. Information technology and communication services led the advance, while materials and healthcare were the sectors in red. Procter & Gamble Co., Nvidia, Goldman Sachs Group Inc. and Salesforce Inc. were amongst the gainers for the day. On the other hand, Tesla Inc. and Coca-Cola Co. were in the red.
Commodities and Currencies
As the US market opened, spot gold fell 0.4% to $4,110.59 an ounce. Crude oil prices rose, with the West Texas trading 0.3% higher at $61.96 per barrel. The Bloomberg Dollar Index was little changed, with the British Pound rising 0.2% at $1.3357 and the Japanese yen at 152.64 per dollar.
Bitcoin, the largest traded cryptocurrency was up 1.7% at $1,11,449.47.
Implications for Indian Investors
So, what does this mean for Indian investors? The US stock market’s record highs could have a positive impact on the Indian stock market, as foreign investors may increase their investments in India. However, it’s essential for Indian investors to keep an eye on the US Fed rate cut and its implications on the Indian economy.
Indian investors can consider investing in US stock market through mutual funds or exchange-traded funds. However, it’s crucial to do thorough research and consult with a financial advisor before making any investment decisions.
Conclusion
In conclusion, the US stock markets’ record highs could have a positive impact on the Indian stock market. However, Indian investors must keep an eye on the US Fed rate cut and its implications on the Indian economy. It’s essential to do thorough research and consult with a financial advisor before making any investment decisions.
