S&P 500 And Nasdaq Break Records After Fed Holds Rates

IQPlus, (6/13) - The S&P 500 and Nasdaq ended at new records on Wednesday following improving inflation data as the Federal Reserve kept interest rates unchanged.

The broad-based S&P 500 rose 0.9 percent to 5,421.03, while the tech-heavy Nasdaq Composite Index jumped 1.5 percent to 17,608.44, the third straight record close for both indexes.

The Dow Jones Industrial Average fell 0.1 percent to 38,712.21. The Fed kept its key lending rate unchanged and forecast just one rate cut this year, down from the three rate cuts expected in March.

The move came after inflation hit 3.3 percent last month, down 0.1 percentage point from April, slightly below expectations.

Fed Chairman Jerome Powell welcomed the inflation data but added that the US central bank needs to see more good inflation readings before it has enough confidence to consider cutting interest rates.

Art Hogan of B Riley Wealth Management characterized the inflation report as very good, saying the market's acceptance of a smaller rate cut suggested investors were likely willing to forego a rate cut in favor of better economic data.

The Nasdaq led the major US indexes, rising 1.5 percent following another big gain by Apple after the tech giant unveiled a new artificial intelligence offering. Other major AI-focused companies such as Microsoft and Nvidia also gained.

Oracle jumped 13.3 percent despite mixed results as analysts expressed enthusiasm for new partnerships with Open AI and Google.(end/AFP)