Dow Jones and other key US indices made a strong rebound in the last couple of weeks. The recent bullish sentiment was boosted after the US consumer price index came in at 7.7 per cent in October, the smallest 12-month increase since January and down from an annual rate of 8.2 per cent in September. The CPI data was fueled by speculation that the Federal Reserve would slow the pace of interest rate tightening from December.
4 reasons behind superb recovery for US stock indices
Strong rebound in U.S. gross domestic product (GDP) in the third quarter.
Dovish comments from the FED policymakers.
Cooler than expected US inflation data.
Robust earnings from the banking and airline giants have also lifted market sentiment.
Dow Jones reached a fresh monthly high near $34,000 this week. While considering the strong momentum the index has not been able to attract new buyers so far this week. On Tuesday, the index initially rose after the US reported cooler-than-expected PPI data and better-than-expected Q3 earnings results from the retail giant Walmart. While the Dow retreats from the highs later due to fresh geopolitical tensions amid unconfirmed reports that Russian rockets had crossed into NATO-member Poland.
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