Wall Street Bounces Back Amid Inflation Hopes and Trade Optimism
Wall Street indexes rose after a cooler inflation report eased tariff concerns and boosted rate cut expectations. The S&P 500 and Nasdaq approached record levels amid U.S.-China trade truce hopes. Investors assess outcomes of trade talks while some stocks like Tesla surged, and others such as GameStop declined.
On Wednesday, Wall Street's main indexes recorded gains as a surprisingly tame inflation report allayed fears concerning tariff-induced price hikes and fueled anticipation for potential rate cuts.
Consumer prices showed only slight increases in May, with the yearly headline inflation at 2.4%, below economists' predictions. Market participants interpret this positively, suggesting potential Federal Reserve rate cuts.
Investors were encouraged by the impending details of U.S.-China trade talks, which could resolve ongoing tensions affecting global markets. Stocks like Tesla rose amid market optimism, while others like GameStop experienced declines.
(With inputs from agencies.)
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