New York, Sept 14 (AFP/APP):Wall Street stocks rose early Tuesday following data that showed a moderation in consumer prices, lessening the odds of an abrupt shift in US monetary policy.
US consumer prices climbed just 0.3 percent in August compared to July, below analyst forecasts and a level that supports the Federal Reserve’s argument that much of the recent inflation spike is due to temporary factors that will fade.
The report had been closely watched for its implications on when the Fed will taper its massive bond purchases.
“Today’s report should allow the Fed to remain patient with a taper announcement,” said a note from Wells Fargo, adding it expects a Fed announcement in November or December about slowing is stimulus.
“While this is a material cooling from recent months, it is still historically firm,” said the note.
About 15 minutes into trading, the Dow Jones Industrial Average was at 34,949.54, up 0.2 percent.
The broad-based S&P 500 added 0.2 percent at 4,477.21, while the tech-rich Nasdaq Composite Index advanced 0.3 percent to 15,148.97.
The early gains came on the heels of Monday’s mostly positive session. Stocks lost ground last week amid worries over the Delta variant of Covid-19 and the trajectory of US monetary policy.
Analysts also are monitoring the latest actions on Capitol Hill, including a Democratic proposal to lift taxes on the wealthy and on large companies.
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