Nasdaq rallies as investors cheer inflation data, Alphabet

The Nasdaq rose to its highest level in over eight months, boosted by April’s less-than-expected increase in inflation and the rollout of Alphabet’s latest AI services. The Consumer Price Index in April performed at a 4.9% YoY increase, lower than the 5% expected, indicating an end to the Federal Reserve’s interest rate hiking cycle. Traders are pricing a pause in interest rate increases at the central bank’s June meeting; less than 5% chance of another 25 basis point hike. However, concerns about the looming US debt ceiling caused choppy sessions on Wall Street.