© Provided by The Independent The Dow Jones Industrial Average rallied to an all-time high after a key measure of inflation and the passing of the $1.9tn Covid relief bill calmed worries and increased confidence on WallStreet on Wednesday.
Consumer price data for February came in lower than expected, easing concerns that prices would rise too quickly as the US economy recovers from the Coronavirus pandemic lockdowns.
"It's clear that investors expect there to be a bump in inflation in the short term, but the long-term view is pretty benign," Katie Nixon, chief investment officer at Northern Trust Wealth Management, told The Associated Press.
The Dow rose 1.5 per cent to 32,297 points bolstered by a 6.4 per cent jump in Boeing, while the broader S&P 500 rose 0.6 per cent. The tech-heavy Nasdaq, meanwhile, posted a small loss of less than 0.1 per cent on the back of technology companies giving back some of their gains from an earlier rally on Tuesday.
While the Labor Department said February's 0.4 per cent increase in consumer prices were the largest in the past six months, a measure called "core inflation", which excludes food and energy, grew by only 0.1 per cent, below analysts expectations.