Traders work on the floor of the New York Stock Exchange on August 2, 2023.
Spencer Platt | Getty Images News | Getty Images
Stock prices rose slightly on Thursday even as a new round of inflation data reflected a rise in consumer prices for December.
The S&P 500 rose 0.2%, while the Nasdaq Composite gained 0.4%. The Dow Jones Industrial Average gained 41 points, or 0.1%. The S&P 500 briefly traded above a record closing high of 4,796.56.
The consumer price index report for December came in slightly higher than expected, reflecting a 0.3% increase in consumer prices for the month, bringing the annual rate to 3.4%. Economists polled by Dow Jones had forecast the CPI rose 0.2% in December and 3.2% year-on-year. However, the core CPI excluding volatile food and energy prices was in line with expectations and suggested persistent, albeit easing, inflationary pressures.
Yields rose on CPI data, with the 10-year Treasury yield rising more than 3 basis points to 4.064%.
“The 'higher for longer' party has received another bullet in its band,” said Giuseppe Sette, president of market research firm Toggle AI. “With the CPI slightly higher than expected … it becomes harder for the Fed to say that inflation pressures have been tamed, particularly given a strong labor market.”
Investors are also awaiting the start of fourth-quarter earnings season, with banking giants Bank of America, Wells Fargo and JPMorgan Chase due to report results on Friday.
Elsewhere, the U.S. Securities and Exchange Commission on Wednesday approved rule changes that opened the door to Bitcoin exchange-traded funds and expanded investor access to the flagship cryptocurrency. Since then, Bitcoin has risen, gaining more than 3% to reach $47,200. Coinbase shares rose more than 2%.
Stocks have had a successful session, with all three major indexes rising on Wednesday. The S&P 500 gained 0.57%, while the Nasdaq Composite gained 0.75%. The 30-stock Dow rose 0.45%.