Wall Street Breaks Records on Consumer Inflation Data and Earnings Reports

Wall Street had a record-breaking week, fueled by the latest consumer inflation data. The Consumer Price Index (CPI) for April increased at a slower rate than expected, leading to a surge in investor confidence and Federal Reserve interest rate-cut bets. This positive sentiment propelled the S&P 500 above the 5,300-point level for the first time ever.

The momentum continued as the Dow Jones Industrial Average surpassed 40,000 points on Thursday, marking a historic milestone. The S&P 500 rose by 1.5%, the Dow Jones by 1.2%, and the Nasdaq Composite climbed by 2.1% for the week.

Quarterly results from the retail sector also made headlines, with Home Depot reporting weak numbers while Walmart delivered a powerhouse quarter. Walmart’s success was attributed to high-income shoppers seeking lower prices and growth in digital advertising.

In other news, Reddit saw a surge in its shares after announcing a partnership with OpenAI, allowing the Microsoft-backed firm to access its data API. This collaboration is expected to enhance the user experience and expand Reddit’s reach.

Additionally, hedge funds revealed their holdings during the 13F season, with Berkshire Hathaway disclosing a $6.7 billion stake in Chubb, leading to an 8% surge in the stock price. Other notable filings came from investment managers like Bill Ackman, Michael Burry, and David Tepper.

Lastly, streaming services are forming alliances to offer customers more choices and value. Comcast announced a new streaming bundle including Peacock, Netflix, and Apple TV at a reduced price, while Disney and Warner Bros. Discovery unveiled their own streaming bundle in partnership with Fox.

Overall, Wall Street’s record-breaking week was driven by a mix of positive economic data, strong corporate earnings, and strategic partnerships in the tech and entertainment sectors.