NEW YORK, June 12 (Reuters) – The S&P 500 and Nasdaq posted record closing highs for a third straight day on Wednesday after consumer prices data came in softer than expected but the indexes ended off the day’s highs as the Federal Reserve projected only one interest rate cut this year.
The U.S. central bank, in a statement at the end of its June 11-12 meeting, said it left its policy rate unchanged at 5.25%-5.5%, as expected.
Stocks were choppy following the news, with the S&P 500 and Nasdaq paring gains late and the Dow finishing near flat.
“The Fed is acting like a CEO, sandbagging rate cut expectations down to one or two cuts but likely going to beat them later this year with two or more,” said Gene Goldman, chief investment officer at Cetera Investment Management in Los Angeles.
Stocks rallied as the session opened, after the Labor Department reported that U.S. consumer prices were unexpectedly unchanged in May amid cheaper gasoline.
Oracle (ORCL.N), opens new tab shares jumped, lifting the market, after the company forecast double-digit revenue in fiscal 2025 after the bell on Tuesday.
According to preliminary data, the S&P 500 (.SPX), opens new tab gained 45.62 points, or 0.85%, to end at 5,421.14 points, while the Nasdaq Composite (.IXIC), opens new tab rose 266.44 points, or 1.54%, to 17,609.99. The Dow Jones Industrial Average (.DJI), opens new tab fell 31.90 points, or 0.08%, to 38,715.52.
After the Consumer Price Index report, traders boosted bets that the Fed will cut rates by September. Traders also added to bets on a second Fed rate cut by December.
Apple’s shares climbed, extending recent gains.
Reporting by Caroline Valetkevitch in New York; additional reporting by Lisa Mattackal and Johann M Cherian in Bengaluru; Editing by Pooja Desai and Richard Chang
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