(Reuters) – The New York Stock Exchange opened higher on Tuesday as U.S. inflation showed a sharper-than-expected slowdown in May, bolstering hopes the Federal Reserve (Fed) will keep interest rates unchanged following its monetary policy meeting on Wednesday.

In early trading, the Dow Jones index gained 0.56% to 34,258.54 points and the broader Standard & Poor’s 500 rose 0.64% to 4,367.57 points.

The Nasdaq Composite takes 0.88% to 13,577.10 points.

The consumer price index (CPI) in the United States rose 0.1% in May over one month and 4% over one year, the latter being the weakest rise in more than two years.

The data reflected a sharper-than-expected slowdown as economists polled by Reuters had expected increases of 0.2% and 4.1% respectively.

What reinforce the expectations of a pause in the Fed’s rate hike policy at the end of the monetary policy meeting which begins on Tuesday for two days.

The yield of ten-year Treasuries deepened its decline after the publication of the statistics before regaining some ground. By the time Wall Street opened, it was down just one basis point to 3.755% after falling as low as 3.682% earlier in the session.

In values, Oracle is still advancing by 5.1% and hit a historic peak after publishing quarterly results that beat expectations, under the effect of the jump in demand for its dematerialized computing services (“cloud”) from the share of companies deploying artificial intelligence (AI).

Also on corporate news, Bunge gains 0.5% after opening in the red following the announcement on Tuesday of a merger agreement with the company Viterra to create one of the largest agricultural trading companies. in the world.

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(Written by Diana Mandiá, edited by Blandine Hénault)

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