U.S. stock indexes opened higher on Thursday after U.S. consumer prices picked up on an annual basis in July, snapping a 12-month streak of slowing increases, but steady monthly readings on underlying price pressures could still deter the Federal Reserve from raising rates. The Dow Jones Industrial Average DJIA, +1.24% rose 267 points, or 0.8%, to 35,395, while the S&P 500 SPX, +1.25% gained 0.7% and the Nasdaq Composite COMP, +1.58% advanced 0.9%. U.S. consumer prices rose by 0.2% in July on both a headline and core basis, both in line with the Dow Jones estimate, according to the latest consumer-price index report from the Department of Labor. The core rate omits volatile food and energy costs. However, the yearly rate of inflation rose to 3.2% from to 3% in the prior month, slightly below the 3.3% forecast. Fed-funds futures traders now see less than 10% chance of a September rate rise by the Fed, down from more than 20% a week ago, according to the CME’s FedWatch tool.
This article was originally published by Marketwatch.com. Read the original article here.
