Standard & Poor’s, Nasdaq open at record highs after inflation data

Wall Street jumped at the open on Wednesday, and the S&P 500 and Nasdaq indices touched new record highs after consumer price data reassured investors that inflation was falling, raising hopes that the Federal Reserve would cut interest rates later this year.

According to “Sky News,” the Dow Jones index rose 346 points, or 0.89 percent, the Standard & Poor’s rose 45.75 points, or 0.85 percent, and the Nasdaq Composite increased 177.75 points, or 0.92 percent.

The core inflation index in America fell last May to 3.4% on an annual basis, for the second month in a row, and more than expected, which represents a pleasant surprise for Federal Reserve officials, who are looking for positive signs in order to start reducing interest rates.

The average expectation was that the core CPI – which excludes food and energy costs – would fall in May to only 3.5%, compared to 3.6% in April.

On a monthly basis, the core consumer price index rose by 0.2% in May, compared to April, against expectations that it would stabilize at 0.3%, similar to last month.