U.S. Stock Market Sees Significant Gains as Inflation Rises

U.S. stocks experienced a notable upswing this morning, highlighted by the Dow Jones index, which increased by more than 600 points on Wednesday.

As trading commenced on Wednesday, the Dow advanced by 1.43%, reaching 43,130.23. The NASDAQ also made gains, rising 1.62% to 19,353.59, while the S&P 500 followed suit with an increase of 1.33%, bringing it to 5,920.50.

Sector Performance

In sector performance, consumer discretionary stocks led with a rise of 2.2% on the previous day. However, healthcare stocks did not fare as well, declining by 0.4%.

Inflation Update

According to the latest data from the Bureau of Labor Statistics, the Consumer Price Index (CPI) saw a year-over-year increase of 2.9% in December. This marks an uptick from November's 2.7% and aligns with economic forecasts. This inflation rise represents the third consecutive increase, attaining the highest annual rate since July 2024.

On a monthly basis, consumer prices increased by 0.4%, surpassing the 0.3% increase of the previous month and the 0.3% predicted by analysts.

Stocks on the Rise

• Safe & Green Holdings Corp. (SGBX) saw its shares soar by 176% to $1.4899 following the announcement of a binding Letter of Intent to acquire all outstanding securities of New Asia Holdings Inc.
• Vision Marine Technologies Inc. (VMAR) enjoyed a boosted share price, surging 58% to $2.21 after submitting a patent application for Battery Authentication Encryption Technology.
• Moving iMage Technologies, Inc. (MITQ) shares increased by 68%, reaching $1.21.

Declining Stocks

• Meiwu Technology Company Limited (WNW) saw its stocks plummet by 63%, dropping to $0.35.
• Aclarion, Inc. (ACON) experienced a decrease of 62%, reaching $0.0367 after announcing a $14.4 million public offering of common stock and warrants.
• Azitra, Inc. (AZTR) shares fell by 40% to $0.2530 due to the announcement of a $1.5 million public offering.

Commodities Overview

In commodities trading, oil prices rose 1.2% to $78.41, while gold increased by 0.8%, reaching $2,702.50. Additionally, silver prices were up by 2% to $30.970, and copper saw a rise of 0.7% to $4.3735.

International Markets

European markets experienced positive momentum, with the eurozone's STOXX 600 rising by 1.2%. Germany's DAX 40 gained 1.6%, while France's CAC 40 saw a 1% increase. Spain's IBEX 35 Index rose by 1.2%, and London's FTSE 100 saw a gain of 0.9%.

In Asia-Pacific markets, results were mixed. Japan's Nikkei 225 fell by 0.08%, China's Shanghai Composite Index dropped by 0.43%, Hong Kong's Hang Seng Index rose by 0.34%, and India's BSE Sensex increased by 0.29%.

Conclusion

The latest CPI data indicates a continuing trend of rising inflation, reflecting various economic pressures. The stock market’s positive response showcases investor optimism, despite some individual declines in specific sectors.

Stocks, Inflation, Market