Wall Street edges higher as cooling inflation boosts rate cut hopes

US equities advanced modestly on Thursday as investors assessed a mix of economic data and corporate news. The S&P 500 gained 0.37% to close at 5 914.62, the Dow Jones Industrial Average rose 0.33% to 42 190.51, while the Nasdaq edged up 0.07%. Data showed the US Producer Price Index (PPI) fell by 0.50% in April - its first monthly decline in over a year - reinforcing disinflation trends following this week’s softer CPI reading. Core retail sales also unexpectedly contracted, strengthening expectations for Federal Reserve rate cuts to support the economy. Industrials, utilities and pharmaceuticals led sector gains. General Electric climbed over 3% after Qatar Airways placed a record order for more than 400 GE engines to power its Boeings fleet. Cisco Systems also outperformed, rising after strong quarterly results and a raised full-year revenue outlook driven by AI infrastructure demand. In contrast, Walmart shares fell 1.20% after warning that new tariffs imposed by the Trump administration would result in price increases across key product categories. UnitedHealth Group tumbled 16% following reports of a US Department of Justice investigation into alleged fraud within its Medicare Advantage division.

Commodity markets saw mixed performance, with precious and industrial metals leading gains. Platinum rose by approximately 0.32% to $993.15 per ounce amid supply concerns, while gold declined by 0.09% to $3 225.13, supported by a weaker US dollar and soft inflation data. Brent crude oil prices also dropped by 2.38% trading at $64.52 per barrel following remarks by President Donald Trump suggesting that the US and Iran may be nearing an agreement on Tehran’s nuclear programme - news that raised the prospect of increased Iranian oil supply in global markets.

Asian markets closed lower as investor sentiment remained cautious amid global economic uncertainty and geopolitical tensions. Japan’s Nikkei 225 fell 0.98% to 37 755.51, while the broader Topix index declined 0.88% to 2 738.96, pressured by a stronger yen and losses in export-driven stocks. The Hang Seng Index dropped 0.88% to 23 432.26, reflecting ongoing concerns around global trade dynamics. Meanwhile, the Shanghai Composite slipped 0.69% to close at 3 380.40 during subdued investor confidence. 

European stock markets also closed with mixed results during sector-specific movements and broader economic concerns. The STOXX 600 index fell by 0.20%, weighed down largely by a 1.70% drop in the energy sector following the decline in oil prices. In contrast, the STOXX 50 rose 0.16% to close at 5 412.08 points, reflecting strength in certain sectors. The FTSE 100 increased by 0.39% closing at 8 618.64. Investor sentiment was dampened by stalled US-EU trade negotiations and recent inflation data that posed challenges for the European Central Bank. 

Locally, at 20h17 the rand strengthened against the US dollar trading at R18.01. the All Share Index (ALSI) closed at 92 338.44 points, down 0.15% for the day. The Capped Shareholder Weighted Top 40 Index (Capped SWIX 40) also dropped by 0.14%. Gold mining stocks also performed well, with Gold Fields and Harmony Gold increasing by 2.26% and 1.48%, respectively. On the other hand, some large-cap stocks like Sasol and Prosus saw declines of 4.61% and 3.07%, respectively.