Nasdaq and S&P 500 Both Broke Records Yesterday
Stocks rose on Wednesday, bringing the Nasdaq and S&P 500 to new highs and pushing the Dow close it its own record.
Quick overview
- The Nasdaq Composite and S&P 500 indices reached record highs on Wednesday due to a lower-than-expected inflation rate of 2.7%.
- The Dow Jones index also saw significant gains, increasing by 1.04% and approaching its all-time high of over 45,000.
- Key stocks like UnitedHealth Group, Merck, and Nike contributed to the market's upward momentum despite concerns over new tariffs.
- Investors are encouraged by the steady inflation rate, allowing for increased market investments.
As the stock market closed off on Wednesday, the Nasdaq Composite and the S&P 500 indices both recorded record highs, which is attributed to a consistent inflation rate.
The Consumer Price Index report from Tuesday showed that inflation is still rising at a rate of 2.7%- less than expected. That made room for the Nasdaq and S&P 500 indices to hit all-time highs for Wednesday. All three major indices rose for the day before trading closed off.
The Dow Jones had the biggest increase, adding 1.04% or 436 points. The Nasdaq Composite grew by 0.14%, and the S&P 500 gained 0.32%. These minor increases for the latter two indices were enough for them to break their previous highs, demonstrating that the market is continuing its upward push. The Nasdaq and S&P 500 have hovered near record highs for weeks, and even the threat of new tariffs has not been enough to slow them down much.
Dow Approaches Record High
This could be a historic week for the Dow Jones index since it could achieve an all-time high later today or sometime on Friday. Back in December of 2024, the Dow Jones rose to its record-breaking high of over 45,000. Now, with a value of 44,922 at the moment, the Dow is nearing that milestone again.
There are a few important stocks on this blue chip index that are helping push the numbers higher. UnitedHealth Group (UNH) is up 3.91% right now, and Merck (MRK) is up 3.00% as well. Nike (NKE) is having a good week and gained 3.02% on Wednesday. There are a number of others that are up nearly that high as well, and many of those increases can be attributed in part to the muted inflation reading received on Tuesday.
With investors seeing a steady inflation rate that is lower than was anticipated, they are able to invest more heavily in the market. There was concern that President Donald Trump’s new tariffs (which took effect last week) would hurt the market. But if that is the case, it has not happened yet, and the market is continuing its upward trend thanks to heavy buying pressure.
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