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Dow Jones Index Rises 500 Points to New Record High
US stock indexes rose during trading on Thursday, September 11, as traders anticipated that the latest reading of the US Consumer Price Index (CPI) would not prevent the Federal Reserve from cutting its benchmark interest rate next week.
The Dow Jones Industrial Average rose 498 points, or about 1.1%, reaching an all-time high during trading. The S&P 500 Index rose 0.5%, also setting a new record during the session. The Nasdaq Composite Index rose about 0.4%.
This comes after the US Consumer Price Index (CPI) reading for August came in above expectations on a monthly basis, but in line with expectations on an annual basis.
The CPI reading showed a 0.4% increase on a monthly basis, according to data from the US Bureau of Labor Statistics, higher than the 0.3% forecast by economists surveyed by Dow Jones. However, the index grew by 2.9% year-over-year, matching estimates.
In addition, the core CPI, which excludes volatile food and energy prices, rose by 0.3% in August on a monthly basis and by 3.1% on an annual basis, matching Dow Jones estimates.
This report comes a day after the release of the Producer Price Index (PPI), which showed an unexpected 0.1% monthly decline and a 2.6% annual increase.
Weekly jobless claims also saw a surprise increase, according to data released Thursday. The number of claims filed for the week ending September 6 increased by 27,000 from the previous week to a seasonally adjusted 263,000, exceeding the expected 235,000.
Thursday's trading moves follow the S&P 500 closing at a record high for the second consecutive week on Wednesday, driven by a strong rally in Oracle shares. The Nasdaq Composite closed Wednesday's session slightly higher, while the Dow Jones Industrial Average lost more than 200 points.
Traders welcomed Oracle's forecast for growth in its cloud business, and the company's shares saw their best daily performance since 1992 on Wednesday, adding $244 billion to its market capitalization.
