Title: US Stock Market Posts Gains as Inflation Concerns Ease
Introduction:
The US stock market experienced a positive week as all three major indexes opened and closed higher. The Nasdaq index saw a significant increase, while the Dow Jones and S&P 500 also made gains. Improved market sentiment was driven by several factors, including a decline in the Fed’s core PCE inflation indicator and Wall Street’s confidence in the Bank of Japan’s policy adjustments. Additionally, popular Chinese concept stocks and large-scale technology companies saw sharp increases, contributing to the overall positive performance of the market.
Market Performance:
The Nasdaq index closed up 1.90% at 14,316.66 points, representing a 2.02% increase for the week. The Dow Jones index rose by 0.50% to close at 35,459.29 points, with a cumulative weekly increase of 0.66%. The S&P 500 index increased by 0.99%, closing at 4,582.23 points and marking a 1.01% increase for the week.
Inflation Figures:
The market responded positively to the news of a decrease in the Fed’s core PCE inflation indicator, which fell to a two-year low. In June, the US personal consumption expenditures (PCE) price index rose 0.2% month-on-month, in line with market expectations. The year-on-year data showed a 3% increase, the lowest level since April 2021, aligning with expectations. The core PCE price index also experienced a slowdown, rising 0.2% month-on-month and 4.1% year-on-year. This decrease of 0.5 percentage points from May’s figures was the lowest annual rate since September 2021.
Chinese Concept Stocks and Tech Companies:
Popular Chinese concept stocks experienced significant gains, with the Nasdaq China Golden Dragon Index rising by 6.97% and a cumulative increase of 13.59% for the week. Companies like Xiaopeng Motors, Bilibili, and iQiyi saw increases of more than 10%. Large-scale technology stocks also performed well, with Intel, Meta, and Tesla leading the way with notable gains.
European Stock Market:
The European stock market also saw an overall increase. The London Stock Market’s “Financial Times” average price index rose by 0.02%, the CAC40 index in France increased by 0.15%, and the German Frankfurt stock market DAX index rose by 0.39%.
Commodity Market:
International oil prices closed higher, with WTI September crude oil futures increasing by 0.61% to $80.58 per barrel, and Brent September crude oil futures rising by 0.89% to $84.99 per barrel. Gold futures on the New York Mercantile Exchange also experienced gains, rising 0.75% to close at $1,960.4 per ounce.
Conclusion:
The US stock market recorded gains as it opened and closed higher throughout the week. Improved market sentiment was fueled by a decline in inflation indicators and increased confidence in global economic policies. Chinese concept stocks and large-scale technology companies were among the top gainers, while the European stock market also experienced an overall increase. As the market continues to navigate the impacts of inflation and geopolitical factors, investors will closely monitor these developments in the coming weeks.
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