S&P 500 hits record high as traders sidestep hotter-than-expected-inflation reading

S&P 500 hits record high as traders sidestep hotter-than-expected-inflation reading

The S&P 500 climbed to a record high Thursday in a winning session for US stocks as investors appeared to embrace the Federal Reserve's signals that hot inflation readings will be temporary and that it will stick with economic support measures. The broad-market index soared to a record high just under 4,240 and the Nasdaq Composite surpassed 14,000 for the first time since early May. The Dow Jones Industrial Average gained ground after a string of three consecutive losses. Stock indexes had been mixed early Thursday after the Labor Department said consumer prices in May rose 0.6%, a higher rate than expectations of 0.5%. Headline inflation jumped to 5% year over year, outstripping expectations of 4.6% from an Econoday survey of economists. Separately, government data showed claims by Americans seeking unemployment benefits reached their lowest since the start of the coronavirus outbreak. New claims last week clocked in at 376,000. Federal Reserve officials have signaled to market participants that they see inflationary pressures as transitory and that the central bank is unlikely to raise ultra-low interest rates before 2023. "It is perhaps testament to how effective the Fed's adjustment in communication has been recently since today's [inflation] reading would likely