Major equity indexes in the U.S. came under pressure during the first half of the session after the data from the U.S. showed that the inflation increased by a faster than expected pace in August. However, the Dow Jones Industrial Average was able to stage a rebound in the late NA session after Deutsche Bank revised up its price target for Boeing, allowing its shares to add more than 1%.
According to the data released by the U.S. Bureau of Labor Statistics, the Consumer Price Index for All Urban Consumers (CPI-U) rose at its highest rate since February at 0.4% in August, lifting the annual CPI up to 1.9%. Commenting on the data, "I don't think the market was expecting that kind of a strength in terms of inflation. What people want is know is whether or not Yellen is going to talk about the lack of inflation as transitory, or whether it is continuing to concern them," Victor Jones, director of trading at TD Ameritrade told Reuters.
The S&P energy index .SPNY pushed higher for the third day in a row, gaining 0.33% after the barrel of West Texas Intermediate rose above the $50 threshold for the first time in more than a month.
The Dow Jones Industrial Average gained 48.89 points, or 0.22%, to close at a new all-time-high at 22,207.07 points. The S&P 500 .SPX lost 1 point, or 0.4%, to 2,494.00, and the Nasdaq Composite .IXIC dropped 31.10 points, or 0.48%, to 6,429.08 as Apple shares extended its losses.
Headlines from the U.S. session:
- Bitcoin dropped to new monthly-low below $3500 after BTCC's announcement
- WTI toys with the $50 handle
- US Dollar consolidates losses, stays afloat above 92 mark
- US Sec of State Tillerson: Going to be very difficult to secure oil embargo on N. Korea
- US CPI: Headline and core inflation strengthen - Wells Fargo
- CME Group FedWatch's Dec hike probability rose above 50% on CPI
- US: CPI for all items rises 0.4% in August as shelter and gasoline indexes increase
- US: Weekly initial claims was 284,000, a decrease of 14,000 from previous week
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