Shares of Salesforce Inc (NYSE: CRM) are surging on Wednesday, according to data from Benzinga Pro. The stock was up 1.85% at $229.47 at the time of publication.
The move is attributed to a broader recovery in technology and software stocks, driven by cooler-than-expected inflation data released by the Bureau of Economic Analysis (BEA). The Personal Consumption Expenditures (PCE) price index grew 0.3% month over month in August, which was below economists' estimates of 0.4%. Headline PCE inflation held at an annual rate of 3.4%, lower than the 3.7% consensus.
Following the data, the CME FedWatch tool indicated that traders see a 52.9% probability that the Federal Reserve will keep interest rates unchanged at 3.75%-4% on Oct. 28, alongside a 47.1% chance of a quarter-point hike.
Separately, the market advance follows an announcement from Salesforce on Tuesday regarding a strategic acquisition. The company signed a definitive agreement to buy AI customer research platform Listen Labs.
From a technical perspective, Salesforce is currently trading 7.2% above its 50-day simple moving average and nearly 20% above its 100-day moving average, having formed a golden cross in September where the 50-day SMA crossed above the 200-day SMA. However, the stock is also trading 4.6% below its 20-day moving average. The Relative Strength Index (RSI) is at 50.03, indicating neutral momentum.
Key technical levels identified in the article include resistance at $268.50, which sits just under the 52-week high area of $269.11, and support at $190, which aligns with a broader post-June recovery zone.
