FX.co ★ U.S. Stocks Seeing Further Upside After Early Advance

### Market Update: Stocks Surge to New Heights

Stocks surged early on Wednesday, continuing to rise throughout the trading day. This robust upward trend has propelled the Nasdaq and S&P 500 to new record closing highs.

As of now, major indices are hovering slightly below their session highs. The Nasdaq has climbed 217.37 points, or 1.3%, to 16,728.55. The S&P 500 has increased by 54.08 points, or 1.0%, to 5,300.76, and the Dow has gained 280.73 points, or 0.7%, reaching 39,838.84.

The rally on Wall Street followed a much-anticipated report from the Labor Department, which revealed that U.S. consumer prices rose slightly less than expected in April.

The Labor Department reported a 0.3% increase in its consumer price index for April, following a 0.4% rise in March. Economists had forecast another 0.4% uptick.

Excluding food and energy, core consumer prices also rose by 0.3% in April, matching March's 0.4% increase and meeting economists' predictions.

The annual rate of consumer price growth decelerated to 3.4% in April from 3.5% in March, aligning with expectations. Core consumer price growth also slowed to 3.6% from 3.8%, matching projections.

Following Tuesday's hotter-than-expected producer price inflation data, this report has renewed optimism regarding the interest rate outlook.

"The CPI print offered a modicum of hope that inflation is cooling, albeit slowly," said Quincy Krosby, Chief Global Strategist for LPL Financial. "The Fed will certainly need a series of cooler reports for adjusting its rate easing timetable, but the CPI report suggests that the path towards 2% is a bit less bumpy."

Separately, the Commerce Department's report showed U.S. retail sales were unchanged in April, following a downwardly revised 0.6% increase in March. Economists had expected a 0.4% rise.

Excluding motor vehicle and parts sales, retail sales edged up 0.2% in April after a 0.9% increase in March, meeting expectations.

### Sector Highlights

Computer hardware stocks are showing significant strength, pushing the NYSE Arca Computer Hardware Index up by 3.5% to a record intraday high. Shares of Dell (DELL) surged after Morgan Stanley raised its price target from $128 to $152, citing it as the "best way to play" the AI infrastructure build-out.

Housing stocks also displayed notable strength, as indicated by a 3.1% rise in the Philadelphia Housing Sector Index, reaching its highest intraday level in over a month despite a report from the National Association of Home Builders showing an unexpected decline in homebuilder confidence in May.

Semiconductor stocks experienced sharp gains, with the Philadelphia Semiconductor Index rising 2.7% to a two-month high. Software, gold, and biotechnology stocks also showed considerable strength, while airline stocks were among the few sectors not partaking in the uptrend.

### International Markets

In overseas trading, Asia-Pacific markets ended mixed, with Hong Kong and South Korea closed for holidays. Japan's Nikkei 225 Index inched up by 0.1%, Australia's S&P/ASX 200 Index rose by 0.4%, while China's Shanghai Composite Index slid by 0.8%.

European markets moved higher, with Germany's DAX Index up by 0.8%, and the U.K.'s FTSE 100 Index and France's CAC 40 Index each increasing by 0.2%.

### Bond Market

In the bond market, treasuries have risen sharply in response to the consumer price inflation data. Consequently, the yield on the benchmark ten-year note, which moves inversely to its price, fell by 10.1 basis points to 4.344%.

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