Stock market today: Dow ends higher as big tech reigns supreme on easing inflation

investing.com:

Investing.com — The Dow gave up gains but ended higher Wednesday, as data showing inflation rose by the slowest pace in more than two years pushed Treasury yields lower and tech higher amid optimism that a widely expected rate increase later this month could prove to be the final hike.

The Dow Jones Industrial Average rose 0.25%, or 86 points, and the Nasdaq was up 1.2%, and the S&P 500 rose 0.74%.

The consumer price index rose 0.2% last month after edging up 0.1% in May, with 12-month inflation also slowing to a 3% pace from 4%, marking the slowest pace of price pressures since March 2021.

While many still expect the Fed to resume rate hikes later this month, rate hikes beyond July will likely be thrown into further doubt should upcoming economic data signal a further slowdown in inflation.

If economic data in the months ahead including the Employment Cost Index on July 28, and the employment and inflation data that is released in August, slow at the pace that we have seen in the CPI data of the past couple of months, then “the July hike may prove to be the final move of the cycle,” Jefferies said in a note.

Big tech shook off its recent malaise, led by Google (NASDAQ:GOOGL), Microsoft (NASDAQ:MSFT) and Meta Platforms Inc (NASDAQ:META) as Treasury yields fell sharply on bets that the Fed rate hikes are nearing an end.

Microsoft added more than 1% as the tech giant took another major step forward toward closing its $69 billion acquisition of Call of Duty maker Activision Blizzard Inc (NASDAQ:ATVI) after a Federal judge rejected the Federal Trade Commission’s request to delay the acquisition, citing a lack of evidence that the deal would lessen competition.

“With the injunction denied, Microsoft has a green light to close