NEW YORK: Wall Street stocks jumped early Wednesday after US data showed lower inflation in May ahead of a Federal Reserve interest rate decision later in the day.
The annual consumer price index came in at 3.3 percent in May, down 0.1 percentage point from April, the Labor Department said in a statement – slightly below expectations.
While the Fed is widely expected to keep interest rates unchanged at Wednesday’s meeting, the figures could keep the US central bank on track for rate cuts later in 2024.
Wall St slips ahead of inflation report
About 10 minutes into trading, the Dow Jones Industrial Average was up 0.7 percent at 39,028.46.
The broad-based S&P 500 gained 0.9 percent to 5,421.87, while the tech-rich Nasdaq Composite Index advanced 1.2 percent to 17,557.33.
The data show that “prices moved in the Fed’s desired direction,” said Briefing.com analyst Patrick O’Hare. “Accordingly, the market will conclude that there won’t be another rate hike and will remain hopeful that a rate cut could come as early as September.”
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