US Markets Scale Record High After Marginal Dip In Inflation

US Markets Scale Record High After Marginal Dip In Inflation

The Dow Jones Industrial Average saw an increase of 0.88 per cent or 349.89 points to close at 39,908.

Juviraj AnchilUpdated: Thursday, May 16, 2024, 09:59 AM IST
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The United States released its inflation data for the month of April on Wednesday. In what is seen as an improvement in prospects, the inflation rate of the country improved as the numbers declined from the numbers in March. The US recorded an inflation rate of 3.4 per cent in April, compared to 3.5 per cent in March.

US Inflation Rate Improves

This is a breaking of trends, that has been set in the past few months, as the in the previous months, CPI numbers have been on a rise, from 2.9 per cent in December 2023 to to 3.1 per cent in January. It increased further in 3.2 per cent in February, before it jumped to 3.5 per cent in March.

The recent improvement in numbers appears to have had a positive ripple effect on Wall Street, as marquee indices ended the day with record highs.

The Dow Jones Industrial Average saw an increase of 0.88 per cent or 349.89 points to close at 39,908. S&P 500 ended the day at 5,308.15 after a substantial 61.47 points or 1.17 per cent rise. In addition, the tech-heavy Nasdaq Composite gained a mammoth 1.40 per cent or 231.21 points, before ending the day's trade at 16,742.39.

The US recorded an inflation rate of 3.4 per cent in April, compared to 3.5 per cent in March.

The US recorded an inflation rate of 3.4 per cent in April, compared to 3.5 per cent in March. | Photo credits: pexels.com

US Imposes Tariff On China

These developments come right at the back of the Biden-led US administration, which monumentally increased the magnitude of the tariff imposed on goods the country imports from its fiercest political and economic rival, China. In this regard, the United States is notably focused on semiconductors and electric vehicles coming from Asian country.

A massive 100 per cent tariff will be imposed on EVs coming from China.

In what can be deemed as a relay effect of happenings at Wall Street, Dalal Street also woke up to positive numbers, as the major Indian indices all started in green, (09:49 IST), with the BSE Sensex gaining 157.64 points, or 0.22 per cent at 73,144.67. Nifty was also trading in green in the early hours of the day, with an increase of 60.40 points or 0.27, to reach 22,260.95. Ina addition, Nifty Bank reached 47,845.80 after gaining 158.35 points, or 0.33 per cent.

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