The U.S. stock market is showing positive momentum, with the S&P 500 hitting a record high and the Dow Jones opening strong following recent inflation data.
New Record for S&P 500
The S&P 500 rose 0.3% at open, surpassing its previous all-time high at 6,156.80. Previously, on February 19, 2025, the index touched an intraday high of 6,147.43.
Inflation Data and Its Impact
New data revealed a slight increase in core inflation for May. The personal consumption expenditures price index, the Federal Reserve’s primary inflation gauge, increased to a seasonally adjusted 0.1% for May. This puts the annual U.S. inflation rate at 2.3%, with core PCE inflation at 0.2% for the month and 2.7% year-over-year, slightly above economists' estimates.
Outlook and Predictions
Despite the slight increase in inflation, stocks remain strong. Easing tensions in the Middle East and recent announcements surrounding tariffs have alleviated some market fears. Investors are watching for the Federal Reserve's next move, with growing optimism that the central bank may lower interest rates at its July meeting.
Thus, despite inflationary pressures, stocks continue to strengthen, reflecting positive expectations in the market and possible actions from the central bank.
