S&P 500 and Nasdaq Composite Rebounded After Inflation Acceleration Met Expectations

Barry Adams
29 Feb, 2024
New York City

Stocks on Wall Street rebounded after the closely watched measure of inflation met the market's expectations. 

The S&P 500 index inched up 0.2% and the Nasdaq Composite advanced 0.5%, and Treasury yields held steady after personal income rose, spending edged lower, and an alternative measure of watered-down inflation accelerated in January. 

Personal income unexpectedly increased by 1.0%, while personal expenditure declined by 0.1%, according to the data released by the Bureau of Economic Analysis on Thursday. 

The personal consumption expenditures price index, an alternative measure of inflation that accounts for product substitution by consumers, increased by 0.3% on the month and by 2.4% from a year ago. 

The December price index was downwardly revised to an increase of 0.1%. 

The core price index, which excludes food and energy, increased 0.4% for the month and rose 2.8% from a year ago as consumers continued to shift spending to services from goods. 

Core inflation accelerated from an increase of 0.1% in December. 

Services prices increased by 0.6% and goods prices decreased by 0.2% from the previous year, respectively, and the changes were larger when compared to the data a year ago. 

Services prices rose 3.9%, and goods prices declined 0.5% from a year ago. 

 

U.S. indexes and Yields

The S&P 500 index increased 0.3% to 5,096.75, and the Nasdaq Composite increased 0.5% to 16,016.38. 

The yield on 2-year Treasury notes decreased to 4.66%, 10-year Treasury notes inched up to 4.28%, and 30-year Treasury bonds edged down to 4.42%.

WTI crude oil decreased $0.02 to $78.52 a barrel, and natural gas prices decreased 4 cents to $1.84 a thermal unit.

Gold increased by $4.25 to $2,036.69 an ounce, and silver fell 7 cents to $22.52. 

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.80.

 

U.S. Stock Movers

Duolingo soared 20.1% to $235.56 after the language  learning platform estimated strong revenue guidance in the fiscal first quarter and full-year after posting better-than-expected fourth-quarter results. 

Snowflake plunged 22.9% to $177.20 after the company reported better-than-expected quarterly results and also announced the retirement of its chief executive, Frank Slootman. 

The stock was also under pressure after the company estimated a weaker-than-expected product revenue outlook in the first quarter. 

Okta soared 24.5% to $108.50 after the identity software management company reported better-than-expected quarterly results and estimated higher-than-expected quarterly results. 

C3.ai surged 19% to $35.07 after the artificial intelligence company reported better-than-expected quarterly results. 

Salesforce inched up 0.5% to $301.36 after the customer relationship management software reported better-than-expected quarterly results but guided revenue growth of less than 9% in the current fiscal year.