Nasdaq closes at record high as US stocks gain
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More news: The tech-heavy Nasdaq finished at a fresh record high of 16,091.92, up 0.9% overnight, boosted by technology stocks including Nvidia and Microsoft. The Dow Jones index closed 0.12% higher, while the broader S&P 500 rose 0.52%.
The rally was a result of traders firming bets on the Federal Reserve to start cutting rates from June. Data released overnight showed US prices rose in January amid strong gains in the cost of services but the annual increase in inflation was the smallest in three years.
Australian shares seen flat after choppy Wall Street session
The news: The Australian sharemarket is likely to start little changed following a mixed session on Wall Street where investors were still assessing implications of key inflation data.
The numbers: The Dow Jones index was down 0.07%, while the broader S&P 500 rose 0.34% and the tech-heavy Nasdaq gained 0.62%. In the local market, ASX 200 futures were up just 3 points or 0.07% at 7665 points at 7:00am AEDT on Friday.
The context: US stocks were mixed after data showed US prices rose 0.3% in January in line with expectations amid strong gains in the costs of services, but the annual increase in inflation was the smallest in three years.
The S&P 500 and Nasdaq gained on the back of technology stocks even as investors assessed the inflation data and Federal Reserve officials' comments to gauge when the central bank might begin cutting interest rates.
Reports on consumer and producer prices earlier in February, which signalled sticky inflation, had led investors to push back expectations of the first rate cuts to June from March earlier.
What they said: "It's not a dramatic decline, but inflation is moving in the right direction and that gives investors a little bit of cover to feel a little bit confident about stepping into the stock market," Robert Pavlik, senior portfolio manager at Dakota Wealth, told Reuters.
The source: Reuters
