U.S. inflation data for February higher than expected but not as bad as feared, boosting stocks
The latest U.S. inflation data for February came in higher than economists expected but lower than many investors had feared, leading to a positive day on Wall Street. U.S. stocks rose on Tuesday, with the S&P 500 hitting a new high. U.S. bond yields and the U.S. dollar also rose, while gold prices turned lower and oil prices ended with losses.
In the stock market, major companies across various sectors helped lift the three major stock indexes. The Dow climbed about 236 points, the Nasdaq Composite gained 1.5%, and the S&P 500 rose 1.1%, reaching its 17th all-time high since 2024. Technology stocks, including the “Seven Heroes,” saw increases, with Nvidia leading the pack with a gain of over 7%. Software giant Oracle’s stock price also surged after beating earnings expectations.
On the U.S. Treasury front, yields rose after the latest government bond issuance faced weak demand from investors. The benchmark 10-year Treasury note yield reached 4.154%, recouping losses from the previous week. The increase in Treasury yields followed a report showing slightly higher inflation than expected.
In the foreign exchange market, the Wall Street Journal Dollar Index rose for the second consecutive day to 97.58. Meanwhile, in the commodity market, crude oil futures ended lower as OPEC maintained its demand growth forecast for 2024 but slightly adjusted its non-OPEC supply growth projection. Gold prices also fell, marking the first drop after eight consecutive gains.
Looking ahead, market participants are closely watching the U.S. Energy Information Administration inventory report scheduled for Wednesday. Analysts predict that crude oil inventories will likely remain unchanged, while gasoline and distillate inventories could see further declines.
Overall, the day’s market movements reflected a mix of positive and negative shifts across various asset classes, driven by the latest economic data and geopolitical events.