U.S. Stocks Rally to Records on Tech Companies' Performance

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U.S. Stocks,Records,Technology Companies

U.S. stocks reached new record highs on Tuesday, with technology companies leading the way. Despite a report on higher-than-expected inflation, traders remained hopeful that the Federal Reserve would still cut interest rates in June.

U.S. stocks rallied to records Tuesday, led again by technology companies, as some of Wall Street’s most influential got back in their groove. The Standard & Poor's 500 jumped 1.1% to top its all-time high set last week. The Dow Jones industrial average climbed 0.6%, and the Nasdaq composite jumped 1.5%. All three indexes began the day with losses after a highly anticipated report on inflation said U.S. consumers paid prices that were a bit higher last month than economists expected.

The worse-than-expected data kept the door closed on hopes that the Federal Reserve could deliver long-sought cuts to interest rates at its meeting next week. But the inflation figures were still close to expectations, and traders held on to hopes that the longer-term trend downward means the Fed will begin the hoped-for cuts in June. That helped stock indexes to reverse their losses as the day progressed. Plus, inflation may not be as hot in reality as the morning’s report suggeste

 

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