U.S. stocks rise as inflation moderates
Dec 14, 2022
New York [US], December 14: Wall Street's major indexes gained, driven by a cooler-than-expected U.S. inflation report.
The Dow Jones Industrial Average added 103.6 points, or 0.3 percent, to 34,108.64. The S&P 500 rose 29.09 points, or 0.73 percent, to 4,019.65. The Nasdaq Composite Index was up 113.07 points, or 1.01 percent, to 11,256.81.
Ten of the 11 primary S&P 500 sectors ended in green, with real estate and energy up 2.04 percent and 1.77 percent, respectively, outpacing the rest. Consumer staple slipped 0.17 percent, the lone declining group.
The headline U.S. consumer prices index (CPI) rose 0.1 percent in November, below the 0.3 percent consensus, for a 7.1 percent year-on-year increase, the Labor Department reported on Tuesday.
The core CPI, which excludes food and energy, rose 0.2 percent, also below the 0.3 percent consensus, for a 6 percent year-on-year increase.
The report came the same day the Federal Reserve kicked off a two-day policy meeting.
"The November CPI rose less than expected, locking in a 50bp (basis point) rate hike tomorrow," "but it's is still not quite the 'compelling' inflation improvement Powell needs to be convinced the Fed can pause soon," Will Compernolle, senior economist at FHN Financial, said Tuesday in a note.
"There are hot spots in multiple categories, and some of the price relief in October and November could be fleeting," Compernolle added.
Source: Xinhua
