The US stock market finished higher for the fourth consecutive trading session on Tuesday, 12 December 2023, as risk sentiments buttressed after softer-than-expected U.S. inflation data points out that the Federal Reserve will cut rates as early as this spring. Market gains were led by shares in financials, tech, healthcare, materials, and industrial stocks.
Nonetheless, market gain was subdued as traders are hesitant to make any prominent moves ahead of the Federal Reserve’s monetary policy announcement on Wednesday. The Fed is most likely to maintain the Fed fund rate steady between the range of 5.25%-5.5%. The central bank’s accompanying statements and projections are being closely monitored by the traders.
At the close of trade, the Dow Jones Industrial Average index advanced by 173.01 points, or 0.48%, to 36,577.94, its highest close since January 2022. The S&P 500 index added 21.26 points, or 0.46%, to 4,643.70, its highest closing level since March 2022. The tech-heavy Nasdaq Composite index climbed up 100.91 points, or 0.7%, to 14,533.40.
A total of 8 of 11 S&P 500 sectors ended the day in positive territory, with information technology the top-performing sector, gaining 0.83%, while energy was the bottom-performing sector, falling 1.35%.
According to the report released by the Labor Department on Tuesday, the consumer price index crept up by 0.1% in November whereas in October it remained unchanged. Core consumer prices, which excludes food and energy prices rose by 0.3% in November after rising 0.2% in October. The report also said the annual rate of consumer price growth slipped to 3.1% in November from 3.2% in October, while the annual rate of core consumer price growth was unchanged at 4%.
Written by Nalin Suriya S
