The stock market soared to new heights on May 15, 2024, as consumer inflation came in lighter than expected. The S&P 500 and Nasdaq Composite both hit all-time highs, with the former gaining 0.7% and the latter rising by 0.8%. The Dow Jones Industrial Average also climbed, adding 198 points or almost half a percentage point to reach a figure just below its all-time high at the time of writing. This rise in stocks was accompanied by a drop in bond yields, as investors adjusted their portfolios in response to the lower inflation rate.
The Consumer Price Index (CPI) showed a decrease for the first time in six months, coming in at 0.3% for April. This slowdown had been anticipated by Wall Street traders, who had been keeping an eye on Federal Reserve swaps that indicated an accelerated pace of policy easing. The 10-year Treasury yield fell to its highest point since early April, while oil prices held steady around $77.75 a barrel.
Despite these positive market movements, some stocks such as GameStop and AMC Entertainment cooled off after two days of significant gains. Memes stocks like GameStop (GME) and AMC Entertainment (AMC) had seen rapid increases in value over the past few days, but on May 15 they experienced a slight pullback.
In addition to the inflation report, investors were also keeping an eye on upcoming events such as the US Conf. Board leading index due on Friday and Eurozone CPI also scheduled for Friday. The Federal Reserve is expected to provide more information about its policy decisions in the coming weeks, with Philadelphia Fed President Patrick Harker, Cleveland Fed President Loretta Mester, and Atlanta Fed President Raphael Bostic all set to speak on Thursday.
In other news related to the market, Boeing Co.'s shares dipped after the US Justice Department found that the aircraft maker had violated a deferred-prosecution agreement tied to two fatal crashes half a decade ago. Copper futures also hit a record high due to a short squeeze and diversion of metal to US shores.
Overall, the stock market's performance on May 15 can be attributed to the decrease in inflation, which has eased concerns about interest rate hikes and provided investors with more confidence in the market. However, traders will continue to monitor upcoming economic data and policy decisions for any signs of potential shifts in the market landscape.
