Wall Street opens higher as US inflation meets expectations

By Mucahithan Avcioglu

ISTANBUL (AA) - US stocks opened higher Wednesday after consumer inflation for July was in line with expectations.

The Dow Jones industrial average edged up 0.01% to 53,797.47 at the opening bell.

The S&P 500 rose 0.48% to 7,765.46, while the Nasdaq Composite gained 0.89% to 26,680.46.

The US Consumer Price Index increased 0.1% month-on-month and 3.4% annually in July, matching market estimates.

Core inflation, which excludes volatile food and energy prices, rose 0.2% on a monthly basis and 2.5% from a year earlier, also in line with forecasts.

Expectations that the US Federal Reserve could raise interest rates next month weakened slightly following the release of the figures.

Analysts said the inflation data, coupled with last week’s report showing weaker employment growth in July, reinforced expectations that the Fed could keep its policy rate unchanged at its September meeting.

Another consumer inflation report is due before the meeting; however, investors will closely monitor producer inflation data scheduled for Thursday.

Technology shares led the advance as corporate earnings indicated continued demand for artificial intelligence infrastructure.

Shares of cloud-computing company CoreWeave surged more than 20% after its second-quarter revenue nearly doubled from a year earlier.

Super Micro Computer climbed more than 10% after the server maker reported financial results that exceeded market expectations.

Investors also continued to monitor geopolitical developments in the Middle East, particularly their effect on energy prices and the inflation outlook.