NEW YORK — Media stocks jumped aboard a vigorous rally Wednesday as the market celebrated the latest interest rate cut by the Federal Reserve the day before.
A milder-than-expected inflation report also buoyed Wall Street’s spirits. The Consumer Price Index, a key inflation indicator, rose only 0.3% in April. That could clear the way for the Fed to continue cutting rates.
The Dow Jones Industrial Average surged 343 points, or 3.15%, to close at 11,215 — breaching the 11,000 benchmark it hasn’t seen since last September.
Media shares beat broader market
Showbiz stocks in many cases outperformed the broader market. Viacom shares rose 5.3% to $55.49 and AOL Time Warner was up 4.5% to $53.04.
Walt Disney, the only entertainment stock that’s part of the DJIA, rose 3% to $32.06.
News Corp. gained 2.7% to close at $37.44; MGM was up $2.9% to $20.40.