Wall Street advances driven by technology after inflation data

The three main stock indices of the US market advance strongly this Thursday morning. Wall Street advances led by technology stocks, after a greater than expected decline in US inflation in October.

The consumer price index in the United States advanced 7.7% year-on-year in October. In September it had posted a rise of 8.2 percent. Today’s data is the lowest since January 2022, a possible sign that the rate hikes are working.

The drop in the consumer price index reported by the Labor Department was greater than expected. Analysts had expected 8% year over year and a 0.6% monthly rate move, according to Market Watch, but 0.4 percent was reported.

The index Nasdaqwith a high technological component, leads the advances with 5.94% at a level of 10,968.61 units, followed by the extended reference of 500 shares S&P 500, with 4.51% to 3,917.63 points. The index Dow Jones up 2.99% at 33,484.73 units.

Rate-sensitive tech stocks rose. Tesla Inc, Microsoft Corp, Apple Inc, Amazon.com Inc, Meta Platforms Inc and Nvidia Corp advanced between 5.5% and 7.2%, while Treasury yields fell after the inflation data.

Inflation data fuel expectations that the Federal Reserve it could start to raise its interest rates with increasingly moderate movements. Later Banxico is expected to raise its benchmark interest rate by 75 basis points again.

After the data was released, the president of the Federal Reserve Bank of Philadelphia, Patrick Harker, said that the United States central bank is approaching a point where it could moderate the pace of interest rate hikes to control the high inflation.

“Inflation is moving in the right direction, and we’re seeing an easing in price growth across the board. It’s clear that inflation is still too high for the Fed’s liking, but this is progress.” highlighted eToro.

jose.rivera@eleconomista.mx