Mood Brightens on Wall Street Following Inflation Data

Investors on Wall Street were visibly relieved when the latest inflation data met expectations, which was particularly beneficial for technology stocks. While the Dow Jones Industrial Average saw only a slight decrease of 0.08 percent to 38,918.31 points, the S&P 500 managed an increase of 0.32 percent to 5,086.22 points. The Nasdaq 100, on the other hand, recorded a significant rise of 0.70 percent, closing at 17,998.90 points. In the US, the rate of price increase relaxed in January, aligning with investors’ hopes for moderate price development. The Consumer Price Index PCE, which is closely watched by the Federal Reserve, was recorded year-over-year at a rise of 2.4 percent, compared to 2.6 percent in December. Excluding the volatile energy and food prices, the core rate dropped from 2.9 to 2.8 percent compared to the previous month. Quarterly reports also dominated market activity. Salesforce, one of the heavyweights, managed to impress with its earnings numbers despite a disappointing revenue outlook, causing its shares to rise by 1.9 percent. In contrast, software firm Snowflake had to absorb a stock price decline of over 19 percent, not least due to the resignation of its CEO and the likewise sobering revenue forecast. In the Nasdaq 100, shares of Monster Beverage stood out with a gain of 5.6 percent after the beverage manufacturer positively surprised with its gross margin. AMD shares reached an all-time high due to sustained positive prospects related to Artificial Intelligence, leading the list with a gain of 7.4 percent. In the wake of these developments, Intel shares in the Dow Jones also climbed by 2.2 percent. The picture was different for AMC Entertainment, whose stock value fell more than 14 percent following a cut in the planned CEO compensation. WW International was hit even harder; due to a weak revenue forecast and the withdrawal of Oprah Winfrey from the board of directors, the shares lost almost a quarter of their value, hitting a record low.