PARIS (Reuters) – The New York Stock Exchange rose in early trading on Thursday, as fresh evidence of a decline in U.S. inflation bolstered speculation that monetary tightening by the Federal Reserve (Fed) would slow.
About 15 minutes after the open, the Dow Jones index gained 222.77 points, or 0.67%, to 33,532.28 points and the broader Standard & Poor’s 500 rose 0.62% to 4,236.17 points.
The Nasdaq Composite took 0.58%, or 74.931 points, to 12,929.741.
Data from the Labor Department showed that producer prices in the United States unexpectedly fell month on month in July.
This indicator, combined with Wednesday’s announcement of a lower-than-expected rise in consumer prices, argues in the eyes of some investors for a Fed rate hike of 50 basis points in September, instead of 75 points. baseline as previously anticipated.
Fed officials, however, put the consumer price figures into perspective and affirmed their commitment to a stricter policy.
“Rates still need to rise even if in the very short term the market reacts positively (…) Inflation is a little more subdued but inflation has not disappeared as a problem yet”, said Chuck Lieberman , chief investment officer at Advisors Capital Management.
In values, Walt Disney jumped 8.62% after announcing that its video streaming platforms (Disney +, Hulu and ESPN +) totaled more subscribers than Netflix.
(Writing by Laetitia Volga, editing by Kate Entringer)
Copyright © 2022 Thomson Reuters