New York, NY – US stocks surged on Tuesday in response to higher-than-expected inflation data, giving investors a glimpse into the potential timing of a Federal Reserve interest-rate adjustment. The Consumer Price Index report played a significant role in shaping market expectations, with the headline inflation meeting predictions with a 0.4% gain in February. The core CPI, which excludes food and energy prices, exhibited a 0.4% increase for the month and a 3.1% rise compared to the previous year, surpassing estimates.
The S&P 500 climbed 0.5%, while the Nasdaq Composite rose by approximately 0.7% following two consecutive days of losses. The Dow Jones Industrial Average also saw a slight uptick of around 0.3%. Prior to the CPI release, S&P 500 traders were preparing for potential market fluctuations, hedging moves of 0.9% in either direction for stocks.
Meanwhile, the soaring interest in cryptocurrency was evident as bitcoin continued its record-breaking rally, surpassing $72,200. The influx of investments in crypto assets propelled the leading token to achieve a nearly 70% increase since the beginning of the year, leading some analysts to predict that bitcoin could reach as high as $350,000 in 2024.
In the corporate sector, Oracle shares experienced a notable 12% surge in early trading as indications of progress in cloud computing emerged, particularly in response to a collaboration with AI chip giant Nvidia. The market response to Oracle’s advancements in the cloud computing space showcased the growing importance of technology companies catering to the evolving needs of consumers and businesses.