US indices moved convincingly higher on Tuesday, once again dragged up by strong performances in the tech sector, Oracle and Nvidia the outliers during yesterday’s session. The S&P 500 appears to be addicted to breaking its own record, establishing yet another all-time high yesterday with a 5,175 close after gaining 1.1% on the day. As expected, the Nasdaq Composite was also up, gaining 1.54%, as was the Dow Jones, which closed 0.6% higher.
The results were somewhat surprising on the face of it, because earlier in the day the Bureau of Labor Statistics revealed higher than anticipated inflation figures across the board. The core inflation rate, which excludes the more volatile prices such as food and gas, beat expectations by 10 basis points both month-on-month and year-on-year. There’s an idea floating around that traders are more concerned by the PCE price index favoured by the Fed, but we’ll have to wait a couple more weeks for those numbers.
Other assets didn’t quite have the fortitude to shrug off the concerning inflation print. After days of relentless gains, gold finally took the foot off the pedal and actually finished the day in the red yesterday, closing 1.1% lower at $2,158 an ounce.
Finally some good news for Chinese stocks, the Hang Seng Index boasted its highest close of the year after surging 3% yesterday. The move was prompted in no small part by gains in the property development sector, buoyed by expectations of renewed government funding support.
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