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All three major U.S. stock indexes finished at their highest-ever levels on Wednesday, fueled by signs of slowing inflation on a monthly basis in April's consumer price index.

It was the first time since March 21 that all three indexes reached record closing highs on the same day.

•    The Dow Jones finished up by 349.89 points, or 0.9%, at 39,908, based on preliminary data. It surpassed its prior record closing high of 39,807.37, reached on March 28.
•    The S&P 500 closed up by 61.47 points, or 1.2%, at 5,308,15. It finished above its prior record closing high of 5,254.35, also reached on March 28.
•    The Nasdaq Composite ended up by 231.21 points, or 1.4%, at 16,742.39 — above its prior record closing high of 16,511.18, which was hit on Tuesday.

“The April inflation reading is the first good data point for the Fed this year," said Mace McCain, chief investment officer at Frost Investment Advisors, which manages $5.1 billion in assets from San Antonio, Texas.

In an email, McCain said "this report comes on the heels of first-quarter numbers that threw a wrench in the Fed's plans to ease rates early in 2024... Rates at present level are slowing the economy.”
 

Excerpted from MarketWatch on May 15, 2024. To read full article, click here