US stocks bounce on inflation optimism
Wall Street stocks jumped on Tuesday as consumer inflation data came in better than expected, as markets shifted focus to the US central bank's upcoming policy decision. The S&P 500 ended 0.7 percent higher at 4,019, while the Dow Jones was up 0.3 percent at 34,108. Meanwhile, the Nasdaq bounced 1.0 percent as well to 11,256. "The market surged with the inflation (data) this morning," said Peter Cardillo of Spartan Capital Securities. He added that the S&P 500 closing over 4,000 suggests that the "year-end rally remains on course." Labour Department figures showed the consumer price index – a key measure of inflation – rose 7.1 percent from a year ago in November. This was down from October's pace, fuelling optimism that rapid price increases may soon be moderating. President Joe Biden reacted with cautious optimism about the US economy, saying that figures gave "a reason for some optimism for the holiday season and I would argue for the year ahead." Investors are now awaiting a key rate decision with the Federal Reserve set to conclude a policy meeting on Wednesday. Many expect the Fed to opt for a smaller half-point interest rate hike as effects of its aggressive campaign to cool demand this year trickle through the economy. Among individual companies, shares of Meta picked up 4.7 percent and Google parent Alphabet rose 2.5 percent. (AFP)