NEW YORK: Wall Street stocks rose early Tuesday following US inflation data that kept alive expectations for a Federal Reserve interest rate cut next month.
The consumer price index rose 2.7 percent from a year ago in July, the same rate as in June.
While “core” inflation stripping out volatile food and energy segments accelerated from the month before, analysts described the report as largely in line with expectations.
That indicates President Donald Trump’s tariffs have so far had only a limited impact on consumer prices.
About 15 minutes into trading, the Dow Jones Industrial Average was up 0.6 percent at 44,221.14.
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The broad-based S&P 500 gained 0.6 percent to 6,414.53, while the tech-rich Nasdaq Composite Index climbed 0.8 percent to 21,553.40.
“Overall, inflation remains well-behaved,” said Nationwide Economist Oren Klachkin. “More tariff-driven price increases are likely ahead of us as more businesses pass on the levies.”
Futures markets expect an interest rate cut in September.
“The numbers came in almost exactly as expected,” said Steve Sosnick of Interactive Brokers. “In this environment anything decent is an excuse to rally and that’s pretty much what we’re seeing.”
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