Rising price levels in the United States slowed in July. Year-on-year, inflation still remained at 5%, but prices rose by only half a month month on month. This is the largest month-on-month decrease in inflation in the last 15 months.
Investors adequately appreciated this relatively favorable report. The New York Stock Exchange strengthened, with the exception of the Nasdaq technology index, which closed 0.16 percent weaker than it was at the beginning of Wednesday’s trading.
The Dow Jones Industrial Average strengthened by 0.62 percent and set a new record approaching 35.5 thousand points. The main index of the New York Stock Exchange S&P 500 gained a quarter of a percent and closed at 4,447.7 points.
The current US inflation data has so far confirmed the argument expressed by the US Federal Reserve (Fed) that the rapid rise in prices is only temporary and will slow down. This is important news for stock markets, as current developments allay fears that the Fed will intervene against high inflation soon. If that happened, it would most likely mean the end of record stock market growth. It will now depend on whether the disinflationary trend is confirmed in the coming months.
