Wall Street stocks rose early Wednesday after a stable inflation reading eased concerns of another Federal Reserve rate hike next month.
Government data showed the Fed’s preferred gauge, the Personal Consumption Expenditures price index, rose 3.4 percent year on year in August, unchanged from July after an upward revision, and below the 3.7 percent forecast.
About 20 minutes into trading, the Dow Jones Industrial Average was up 0.1 percent at 51,386.46. The broad-based S&P 500 rose 0.4 percent to 7,699.89, while the tech heavy Nasdaq advanced 0.6 percent to 26,958.66.
“Any good news on inflation right now is understandably interpreted as good news,” said Steve Sosnick of Interactive Brokers.
The report also showed private sector hiring improved. Payroll firm ADP reported 90,000 jobs added last month, up from 38,000 in July and above market expectations.
Separately, the Commerce Department revised second-quarter GDP growth up by 0.7 percentage point to 2.2 percent, supported by resilient consumer spending.
Traders now see about 35 to 39 percent chance of an October rate hike, down from about 45 to 51 percent before the release, according to LSEG and CME FedWatch data.
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