US Stocks Soar Near Record Highs After Positive Inflation News – What You Need to Know!

U.S. stocks are hovering close to their record highs, showing some calm in the market. Recent reports indicate that President Trump’s tariffs aren’t yet driving inflation up as much as some feared.

The S&P 500 saw a slight increase of 0.1% recently, sitting just 1.6% below its all-time high from February. Similarly, the Dow Jones rose by 73 points, while the Nasdaq climbed 0.2%. In the bond market, Treasury yields fell after inflation data revealed that prices for consumers were up 2.4% in May compared to last year. This figure, though higher than April’s 2.3%, was lower than the expected 2.5%.

Economists had expressed concern that the tariffs could spark higher inflation, particularly as it seemed inflation had nearly reached the Federal Reserve’s target of 2%, down from over 9% a couple of summers ago. So far, businesses appear to be drawing from their existing inventories rather than passing on new costs from imports.

Ellen Zentner, the chief economic strategist at Morgan Stanley Wealth Management, mentioned, “Another month goes by with little evidence of tariffs, but the longer-term inflation challenge they pose remain.”

Investors are watching closely as trade talks between the U.S. and China progress. Trump announced that China would supply rare-earth minerals and allow Chinese students to study at U.S. universities, offering hope for a broader trade deal that could ease tensions between the two economic giants. Such prospects have helped lift the S&P 500 back toward its highs, especially after a significant dip several months ago.

In company news, Chewy, the online pet supply retailer, experienced an 11.8% drop after reporting weaker profits than expected. Meanwhile, Tesla’s shares rose by 1.4% as the company rebounded from previous losses linked to Elon Musk’s strained relationship with Trump.

In the bond market, 10-year Treasury yields eased slightly, indicating changing expectations about future interest rates. According to Brian Jacobsen, chief economist at Annex Wealth Management, the Federal Reserve could consider rate cuts, especially as the inflation landscape evolves.

Globally, other markets also saw modest gains, with South Korea’s Kospi standing out with a 1.2% increase.

Overall, stocks and bonds are proving resilient amidst mixed signals from inflation and trade dynamics. As the situation evolves, both businesses and investors remain watchful of the economic climate.



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Federal Reserve System, Financial markets, Donald Trump, Elon Musk, China, Stocks and bonds, Inflation, Economic indicators, London, United States, General news, Asia Pacific, AP Top News, World news, Tesla, Inc., Business, Brian Jacobsen, Ellen Zentner, Financial services, World News