London, Wednesday, 12 April 2023
After statistics showing US inflation slowed more than expected in March, fuelling hopes that the Federal Reserve's monetary tightening is coming to an end, the Dow increased by more than 100 points in early trade on Wednesday.
The S&P 500 and the Nasdaq 100 also increased. Below experts' predictions of 5.2%, the annual inflation rate dropped to 5.0% last month, sparking speculation that policymakers may raise interest rates one more time in May before pausing and switching to a dovish stance in the second half of the year.
Following the recent volatility in the banking industry, investors are now awaiting the Federal Reserve's March policy meeting minutes for more information on the central bank's monetary course.
On the corporate front, shares of Chinese companies Baidu, Alibaba Group Holding, and JD.com that are listed on the US stock exchange fell between 1% and 4% as investors considered the escalating geopolitical tensions.
(Report by: Jonathan Davies - Finance editor, The Decision Maker)