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Overnight Markets: Wall Street rallies after US inflation data

Apple inched closer to a $1 trillion stock market value, with its shares surging 1.43% to a record high close of $190.04.

 
Overnight Markets: Wall Street rallies after US inflation data

Wall Street jumped on Thursday in a broad rally as tepid inflation data eased concerns of faster US interest rate hikes this year.

The Dow Jones Industrial Average rallied 0.8% to end at 24,740 points, while the S&P 500 gained 0.94% to 2,723, its highest level since mid-March. The Nasdaq Composite added 0.89% to 7,405.

The US Labour Department’s consumer price index rose 0.2% in April, less than economists’ expectations, as increasing costs for gasoline and rental accommodation were tempered by a moderation in healthcare prices.

Core CPI, which excludes food and energy components, edged up 0.1% last month, slower than the previous two months, and did little to alter traders’ expectations of a June rate hike.

With investors setting aside concerns about a trade war with China, the shares rallied broadly, with all 11 major S&P sectors posting gains.

Apple inched closer to a $1 trillion stock market value fuelled by a $100 billion buyback plan unveiled last week. Shares of the tech giant surged 1.43% to a record high close of $190.04, lifting the S&P 500 more than any other stock.

CenturyLink added 7.54% after its first-quarter report. That helped the telecoms sector jump 1.9%, more than any other sector.

AXA Equitable Holdings, the US division of French insurer AXA, rose 1.7% in its market debut. Although its offering raised less than targeted, it was still the biggest US IPO this year.

The top losers on the S&P 500 included Victoria’s Secret owner L Brands, which declined 7.15%, and Booking Holdings, formerly called Priceline, which fell 4.74%. Both companies gave disappointing outlooks.

In Asia, shares traded higher on Friday in morning session, following gains seen on Wall Street overnight.

The Nikkei 225 was up 0.69% in Tokyo, while the Kospi in South Korea rose 0.49%. The Hang Seng Index was up 0.83%. Mainland markets, meanwhile, searched for direction, with the Shanghai composite edging higher by 0.03%. Over in Sydney, the S&P/ASX 200 tacked on 0.15%.

 

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