The week, month, and first half of the year on Wall Street concluded with a strong rally on Friday, driven by reports indicating a potential easing of inflationary pressure. The S&P rose by 53 points, or 1.2%, reaching 4,450. Meanwhile, the Dow increased by 285 points, or 0.8%, reaching 34,407, and the Nasdaq saw a rise of 196 points, or 1.4%, reaching 13,787. In June alone, the S&P rose by approximately 6%, marking an impressive 16% increase since the beginning of the year, according to CNBC. The Nasdaq experienced its best half-year start since 1983, surging by about 31%, while the Dow saw a more modest increase of around 4%.
These gains were fueled by a report that indicated a decrease in the preferred measure of inflation by the Federal Reserve during May. Additionally, the report stated that consumer spending growth had slowed down more than expected. Brian Jacobsen, the chief economist at Annex Wealth Management, expressed his belief that the trend of inflation decline and tepid consumption growth suggests a possible end to rate hikes. Lower interest rates have a positive impact on various investments, including stocks and cryptocurrencies. However, high-growth stocks in the technology sector are typically seen as the biggest beneficiaries, and they played a significant role in leading the market.
One such example is Nvidia, which rose by 3.7%. Among a select group of stocks that experienced significant growth this year due to the hype surrounding artificial intelligence software, Nvidia has surged by nearly 190% so far, with an additional 1.8% increase on Friday. Cruise line operators also contributed to the rally, with Carnival leading all stocks in the S&P 500 with a gain of 9.8%, while Norwegian Cruise Line climbed by 4.7%. Travel stocks have been performing well recently, driven by expectations of strong demand as vacationers resume their travel plans. On the other hand, Nike experienced a decline of 2.5% on Wall Street after reporting weaker profits for the latest quarter than anticipated, although its revenue exceeded expectations.
This is just a glimpse of the latest developments in the stock market. For more stories and updates, continue to follow our coverage.
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