NEW YORK -- The Nasdaq Composite Index on Thursday topped the 15-year all-time high it set during the dotcom bubble as investor sentiment was boosted by the Federal Reserve's dovish tone on rate hikes.
The Nasdaq touched a session high of 5,143.22 points in early afternoon trading, breaking the 5,132.52 record it set on March 10,2000. The closing record for the Nasdaq was 5,106.59 points set on May 27, 2015.
After the conclusion of a two-day Fed policy meeting ending Wednesday, the Federal Reserve signaled that it was on track to raise the benchmark interest rate this year despite the lower-than- expected economic outlook.
However, Yellen stressed that the importance of the initial increase should not be overstated, adding that the stance of monetary policy will likely remain highly accommodative for quite some time after the first interest rate hike in almost nine years.
"Basically, I think people are very confident in what the Federal Reserve has said. You also have a not-so-aggressive CPI report today. The core CPI is very weak, which would push the Fed in the future to be less aggressive when raising rates," said Stephen Guilfoyle, managing director at Deep Value.
The Consumer Price Index for all urban consumers increased 0.4 percent in May on a seasonally adjusted basis, slightly below market consensus, the U.S. Labor Department said Thursday.
The index for all items less food and energy rose 0.1 percent in May, its smallest increase since December.
"As oil prices stabilize, the freefall in the headline CPI is gradually receding into the past; however, just because inflation is no longer falling, it does not mean that it is yet time to worry about it rising enough to raise concern," said Sophia Kearney-Lederman, an economic analyst at FTN Financial, in a note.
In a separate report, the Labor Department announced the advance figure for seasonally adjusted initial claims was 267,000 in the week ending June 13, a decrease of 12,000 from the previous week's unrevised level of 279,000. Enditem
