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U.S. stocks are rising after inflation data reads cooler than expected

AuthorLiz Moyer
Published 06/30/2023, 10:32 AM
Updated 06/30/2023, 11:03 AM
© Reuters.

Investing.com -- U.S. stocks are rising after better-than-expected news on inflation for May.

At 11:00 ET (15:00 GMT), the Dow Jones Industrial Average was up 211 points or 0.6% while the S&P 500 was up 1% and the NASDAQ Composite was up 1.4%.

Stocks are set to end the month, quarter, and first half of the year on a high note after inflation data for May came in cooler than forecasts. The personal consumption expenditure index, the Fed's preferred inflation gauge, rose 3.8% compared to a 4.3% rise in April.

Excluding the volatile food and energy components, PCE rose 0.3% after rising 0.4% the month before.

Cooling inflation a factor for Fed rate deliberation

Evidence that prices are cooling is one factor the Federal Reserve is likely to consider when it next meets in July to decide on interest rates. Futures traders are betting on a greater than 85% probability that the Fed will raise rates another quarter of a percentage point, even after pausing on rate hikes this month.

Chair Jerome Powell has said that more rate increases are likely as the Fed works to lower inflation, which is still running more than twice as high as the 2% target. He also said he doesn’t believe inflation will get to that target this year or next year.

The University of Michigan's consumer sentiment reading came in at a stronger-than-expected 64.4 in June, up from 59.2 in the prior reading.

Apple hits $3 trillion mark during session

The three stock indexes are on track to end the month and the second quarter on a high note. Investors are discounting the possibility of a recession even as the Fed continues on an aggressive tightening trajectory.

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Shares of Apple Inc (NASDAQ:AAPL) rose 1.6% and topped the $3 trillion mark. If the stock stays above $190.73 by the close of trading, it will make Apple the first member of the $3 trillion valuation club.

Nike misses on first quarter outlook

Shares of athletic apparel maker Nike Inc (NYSE:NKE) fell 2.5% after its first quarter forecast fell below expectations though it said inventory was improving after using discounts to move out extra merchandise.

Latest comments

Inflation is used to transfer wealth from the poor without them knowing it
Not as much as growing wealth disparity.
Isn't it time for the SEC to investigate Wall Streets's ability to mark up their portfolios at the end of a quarter (window dressing) so Goldman and others can bigger bonuses.?
Window dressing doesn't increase the value of a portfolio for that quarter, because it's done near the end of that quarter.
Shorts getting hammered
not that much. gonna be your turn soon to get hammered hah
I made $300K buying Netflix last summer
For someone who consistently decries the downfall of the USA, you sure seem to like our companies. Funny, that.
The Bear market ended last October 2022.
  "retailers always want to crash markets"  --  Huh?
First, I'm aware of market history, and you're right, it is a usual condition that can take place when we have a major bear market, but, the market is well above that 20% from the oct lows....the technical picture has not yet verified that we are at a high point and a major correction is about to take place....we have well exceeded the 20% in this market from the lows, and with seasonality kicking in, this could be the market signaling much higher targets before we see a major correction.... the're are other possitve technical factors as well, indicating higher prices......if I'm wrong First, then the Market will send us signals that something is about to change.
  I said "It's NOT often", as in I was agreeing w/ you, as in that it's very seldom, as in we should NOT expect this current rally to reverse back into a continuation of the bear market.
but isn't inflation still too high? Aren't interest rates highest in decades? Isn't unemployment rate too low? Isn't debt at all time high? Didn't we just raise debt ceiling for government? Didn't we just see some banks falling over? Don't we have a war going on? Don't we have supply chain issues? Don't we have a housing bubble? Don't we have worldwide trade tensions? Don't we have utility bills like never seen before? I guess not...
Those are only good things for the market!
Muy atinados tus comentarios Keke... en tu opinion en que punto o momento crees que se revierta el Mercado..? Capitulacion acaso..??
Inflation is used to transfer wealth from the poor without them knowing it
a little too late doofs.
joke
"US consumer spending stalls in May; inflation still elevated", actual headline on the front page of this site too. It is worth noting, inflation has outpaced wage growth every single month since Biden took office. The White House does nothing but lie. Inflation is not down YoY, inflation is cumulating. The cumulative amount of inflation since Biden took office is nearly 20%. The total amount of inflation during all 4 years of Trump in office was only 6.5%.
Its hard to see anything Biden done right, yet still people who will vote to re-elect him. Amazing what this country has become.
 I will voted for him, because he has done many things right.
 I will voted for him, because he has done many things right.
muahahahahahaaaahahaha. This is turning into a JOKE now
Enjoy the US inflation lull while you can. AP reports only 34% of Americans approve of Bidenomics.
A minority of Americans approved of Trumponomics in late 2020.
supreme court finally doing its job,,,, student debt cant be cancelied by rogue prsudent, affirmative racism not permitted by colleges, abortion law back to state level... wow!!
  "can not pick ur gender"  --  Plenty of people can and do.
neo-fascist bigot risotto can't contain his excitement, that the trump appointed old school fascists at the supreme court are dragging the country backwards into the mud...
mini min rex md can help you. just last, duh we kno duxmtuxks think they can choose
Student Loan forgiveness was denied! Payments resume in October. Goodbye economy
you really are a sad little man brad
  Thanks for confirming retrumplicans want "Goodbye economy" so they can get "goidbye Biden".
 Observing that someone claiming to be a college graduate spelled paid p-a-y-e-d is not an ad-hominem. Don't you ever get tired of siding with obvious ignorance?
There will be rate hike anyway.
You used singular.  So 1 instead of 2 hikes as feared.
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