U.S. stock indexes opened higher on Thursday as consumer prices in the country showed an annual increase in July, breaking a 12-month streak of slowing growth. However, concerns about steady monthly readings on underlying price pressures could temper the Federal Reserve’s decision to raise rates.
Dow Jones Industrial Average
The Dow Jones Industrial Average (DJIA) rose by 267 points, or 0.8%, reaching 35,395.
The S&P 500 (SPX) experienced a 0.7% gain.
The Nasdaq Composite (COMP) advanced by 0.9%.
Consumer Price Index Report
According to the latest consumer-price index report from the Department of Labor, U.S. consumer prices increased by 0.2% in July on both a headline and core basis, aligning with the Dow Jones estimate. The core rate excludes volatile food and energy costs.
Annual Inflation Rate
However, the yearly rate of inflation rose to 3.2%, slightly below the forecast of 3.3%, but up from the prior month’s rate of 3%.
Likelihood of Rate Rise
Traders of Fed-funds futures now estimate less than a 10% chance of a September rate rise by the Federal Reserve, down from over 20% a week ago, according to the CME’s FedWatch tool.