NEW YORK: Wall Street stocks opened higher Wednesday, extending an upward climb following benign US inflation data that has boosted confidence that Federal Reserve interest rate cuts are coming soon.
Investors are looking ahead to wholesale price data on Thursday, but there are no major economic releases on Wednesday. Tuesday’s stable consumer price index reading sparked a rally, with smaller companies joining the march higher.
About 25 minutes into trading, the Dow Jones Industrial Average was up 0.9 percent at 44,838.56.
The broad-based S&P 500 gained 0.5 percent to 6,478.99, while the tech-rich Nasdaq Composite Index jumped 0.6 percent to 21,800.60.
Wall St edges higher after inflation rises moderately in July
“Investors started looking at the underperforming small caps and went right to the handbook yesterday and likely will continue,” said Art Hogan of B. Riley Wealth Management.
Among individual companies, artificial intelligence infrastructure company CoreWeave fell 13.9 percent despite reporting a more than tripling of quarterly revenue to $1.2 billion and projecting higher than expected revenue growth.
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