An predicted U.S. inflation estimate calmed investors and cut Treasury yields, sending the S&P 500 and Nasdaq to new highs and the global share index higher on Thursday.
Wall Street recovered from market jitters ahead of the U.S. personal consumer expenditures (PCE) price index data, sending the Nasdaq to a new high for the first time in almost two years.
Despite the Federal Reserve's PCE inflation index showing the lowest annual increase in nearly three years, a June interest rate cut remains possible.The market's fluctuations today express relief over low inflation. It damaged fixed income and equities markets, said TD Wealth U.S. wealth strategist Sid Vaidya.
The Dow Jones Industrial Average (.DJI) advanced 47.37 points, or 0.12%, to 38,996.39, while the S&P 500 (.SPX) rose 26.51 points, or 0.52%, to a record closing high of 5,096.27
Nasdaq Composite (.IXIC) increased 144.18 points, or 0.90%, to 16,091.92. Previous record: 16,057.44 in November 2021. The S&P gained 5.17%, Nasdaq 6.12%, and Dow 2.22% for the month, their fourth straight increases. The S&P recorded its longest monthly streak since July 2023.
MSCI's worldwide stock index (.MIWD00000PUS), opens new tab, rose 2.73 points, or 0.36%, to 760.86, aiming for a record close. Despite decreased energy costs lowering inflation to 2.7% in February, the German DAX (.GDAXI) climbed 0.4% to a record high, while the STOXX 600 <.STOXX> index remained stable.
Bitcoin reached $61,665.00, its sixth daily gain and largest monthly gain in over three years, up 1.82%. Investors hope it can hit its late 2021 record high of $69,000. Spot bitcoin exchange-traded funds licensed and introduced in the U.S. this year have drawn new investors and rekindled interest in the asset class after the "crypto winter" of 2022.
The dollar slump helped gold reach a one-month high as traders focused on Fed statements rather than inflation. Gold climbed 0.43% to $2,043.39 oz. US gold futures increased 0.5% to $2,043.10.
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