The U.S. stock market experienced a significant surge last week as the Dow, S&P 500, and Nasdaq Composite all hit record highs, with the Dow crossing the 40,000 milestone for the first time. Growth stocks flourished amid decreased worries about inflation and interest rates, likely due to a perceived increase in future earnings.
Investor confidence was buoyed by the Labor Department's April consumer price index (CPI) report, where both headline CPI and core prices showed a 0.3% rise. Noteworthy inflationary pressures were observed in service sectors, particularly in transportation, with a substantial monthly increase and a significant annual surge.
The bond market responded positively to lower inflation and growth predictions, with municipal bonds experiencing high demand despite heavy new issuance. High yield bonds saw increased trading volumes following favorable inflation data, while investment-grade bond spreads initially widened before retracting.
[
add
]
[
|
|
...
]