The major US stock indices have grown significantly, while the S & P 500 has exceeded the key technical level after weak inflation data cooled fears about a faster rate hike.

As reported by the US Labor Department, the consumer price index (CPI) in April rose by 0.2% after a decrease of 0.1% in March. At the same time, the basic CPI, which does not take into account volatile prices for food and energy, rose 0.1% in April after rising 0.2% in March. Economists had expected the CPI to increase by 0.3% in April and the base CPI by 0.2%. Compared to the same period of the previous year, the consumer price index increased by 2.5%, and the base index - by 2.1%. Economists predicted that the total annual inflation in April will be 2.5%, and the base one - 2.2%.

Market participants also analyzed weekly data on initial applications for unemployment benefits, which showed that new applications unexpectedly stayed at the level of more than 48-year low last week, indicating further tightening of labor market conditions. According to the report of the Ministry of Labor, the initial applications for state unemployment benefits remained unchanged at seasonally adjusted levels of 211,000 for the week ending May 5. Economists predicted that over the last week of circulation will grow to 218,000.

Most of the components of DOW finished trading in positive territory (27 out of 30). Exxon Mobil Corporation (XOM, + 2.25%) was the leader of growth. Outsider were shares Pfizer Inc. (PFE, -0.41%).

Almost all sectors of S & P recorded a rise. The utilities sector grew most (+ 1.4%). The decrease is demonstrated only by the sector of conglomerates (-0.5%).

At closing:

Dow 24,739.53 +196.99 +0.80%

S&P 500 2,723.07 +25.28 +0.94%

Nasdaq 100 7,404.98 +65.07 +0.89%