CPI and Powell lift Wall Street to new highs

Wall Street was hit by the double whammy of tame inflation and the Fed’s latest rate decision to propel the S&P and the Nasdaq to a second-straight day of new highs. U.S. consumer prices rose year-over-year in May by 3.3% year-over-year, while core inflation (ex-food and energy) rose 0.2% from April to May and 3.4% YOY. All figures were lower than the street’s expectations. U.S. Fed chair Jay Powell “welcomed Wednesday’s CPI print” and held the key lending rate, but cautiously said that he needed to see similar readings in the future to lower rates. Nonetheless, the street greeted his comments positively. The S&P rose 0.85% to 5,246 and the Nasdaq climbed 1.53% to 17.608, both averages holding steady throughout the day. However, the Dow sank into the close to finish down 35 points.

Major movers included Oracle, popping 13.32%, while the most traded names all gained: Nvidia by 3.55%, Apple 2.86% and Tesla 3.88%. The U.S. 10-year yield declined to 4.32% as Bitcoin regained 1.1% to US$68,000.

The TSX also advanced though at a more modest 0.32% to nearly 22,000. Most sectors rallied, led by staples and real estate, while four sectors including energy lagged. By far, the biggest gainer was Canadian Western Bank which rocketed 68.3% after National Bank announced it was buying it. The latter sank 5.89%. Elsewhere, Laurentian Bank rose 6.58% though CNQ slipped 0.78% as the most-traded name. WTI gained US$0.50 to US$78.40.

💻 Oracle (ORCL-N) +13.32%

💾 NVIDIA Corporation (NVDA-Q) +3.55%

🍎 Apple Inc (AAPL-Q) +2.86%

🚗 Tesla Inc (TSLA-Q) +3.88%

🅱 Bitcoin (BTCUSD) (CRYPTO:BTC) +1.1%

🏛 Canadian Western Bank (CWB-T) +68.3%

🏛 National Bank of Canada (NA-T) -5.89%

🏛 Laurentian Bank (LB-T) +6.58%

🛢 Canadian Natural Rsrcs (CNQ-T) -0.78%