U.S. Stock Market Rises Significantly; Inflation Hits 2.9% in December

On Wednesday morning, U.S. stocks experienced a notable rise, with the Dow Jones Industrial Average climbing over 600 points. Investors reacted positively to key economic data as the market opened.

After the market opened on Wednesday, the Dow was up 1.43% at 43,130.23. The NASDAQ saw a larger increase, rising 1.62% to 19,353.59, while the S&P 500 followed suit with a gain of 1.33%, bringing it to 5,920.50.

Leading and Lagging Sectors

Consumer discretionary stocks led the way on Tuesday, increasing by 2.2%. In contrast, the health care sector experienced a slight decline, with shares falling by 0.4%.

Top Economic Indicator

According to new data released by the Bureau of Labor Statistics, the headline Consumer Price Index rose by 2.9% year-over-year in December. This figure marks an increase from November’s rate of 2.7% and aligns with what economists had predicted. Notably, it indicates the third consecutive inflation increase, reaching the highest annual rate since July 2024.

On a monthly basis, consumer prices rose by 0.4%, which is higher than both the previous month’s gain of 0.3% and the 0.3% increase analysts had expected.

Equities Trading Up

• Safe & Green Holdings Corp. (SGBX) shares surged by 176%, reaching $1.4899. This increase followed the company’s announcement of a binding Letter of Intent to acquire all outstanding securities of New Asia Holdings Inc.
• Vision Marine Technologies Inc. (VMAR) shares experienced a boost, rocketing 58% to $2.21, thanks to the filing of a new patent application for Battery Authentication Encryption Technology with the United States Patent and Trademark Office.
• Moving iMage Technologies, Inc. (MITQ) shares surged, gaining 68% to $1.21.

Equities Trading Down

• Meiwu Technology Company Limited (WNW) shares fell by 63% to $0.35.
• Aclarion, Inc. (ACON) dropped 62% to $0.0367 after announcing a public offering of common stock and warrants priced at $14.4 million.
• Azitra, Inc. (AZTR) fell 40% to $0.2530, following a public offering announcement for $1.5 million.

Commodities Update

In the commodities market, oil prices rose by 1.2% to $78.41, while gold prices increased by 0.8% to $2,702.50. Silver also climbed, gaining 2% to reach $30.970, and copper saw a 0.7% increase to $4.3735.

European Market Overview

European markets also showed positive movement today. The eurozone's STOXX 600 index surged 1.2%, Germany's DAX 40 rose by 1.6%, and France's CAC 40 was up 1%. Spain's IBEX 35 Index saw a 1.2% gain, while London's FTSE 100 rose by 0.9%.

Asian Market Performance

Asian markets had a mixed closing on Wednesday. Japan's Nikkei 225 fell by 0.08%, the Shanghai Composite Index in China slipped by 0.43%, whereas Hong Kong's Hang Seng Index rose by 0.34% and India's BSE Sensex increased by 0.29%.

Economic Insight

The overall increase in the Consumer Price Index is a key indicator of inflation trends which can impact consumer spending and economic growth. Understanding these trends can help investors make informed decisions moving forward.

Stocks, Inflation, Market