The US stock market reached unprecedented heights on September 27, fueled by encouraging inflation data that suggests the economy is moving closer to the Federal Reserve’s target rate. The benchmark Dow Jones Industrial Average, comprising 30 top-tier companies, surged 137 points to close at an all-time high of 42,313.00, marking its 32nd record-breaking performance this year. This upswing follows the release of the Personal Consumption Expenditures (PCE) index, which revealed a decline in consumer prices to 2.2% annually, nearing the Fed’s 2% target. Core inflation, excluding food and energy prices, rose 2.7% in August. The market’s optimism has been sustained since the Federal Reserve’s 50-basis point interest rate cut on September 18, with the S&P 500 index hitting multiple record highs despite a slight 0.18% dip on September 27. In other markets, China’s CSI 300 index soared 4.5% on September 27, capping off its largest weekly gain since 2008, driven by news of government stimulus measures. Hong Kong’s Hang Seng Index also recorded its biggest weekly increase since 1998. Meanwhile, gold prices continue to climb, poised for their largest quarterly gain on record. The SPDR Dow Jones Industrial Average ETF Trust, which tracks the Dow 30 index, holds a consensus Hold rating among 61 Wall Street analysts, with a $468.47 average price target implying 10.76% upside from current levels.
Leave a Reply