PARIS (Reuters) – The New York Stock Exchange opened higher on Thursday as monthly producer price data provided further evidence of slowing inflation in the United States.
In early trading, the Dow Jones index gained 110.12 points, or 0.32%, to 34,457.55 points and the broader Standard & Poor’s 500 rose 0.56% to 4,497.09 points.
The Nasdaq Composite took 0.92%, or 127.917 points, to 14,046.88.
An hour before the opening, the Labor Department announced that the producer price index was up 0.1% in June, against 0.9% in May and 0.4% for the Reuters Consensus.
“This is further confirmation that inflation is starting to run out of steam,” said Peter Cardillo, chief economist at Spartan Capital Securities.
According to Federal Reserve interest rate futures, markets fully priced in another rate hike from the committee at the end of the month, but expectations for further hikes have dimmed. . With US inflation easing and growth remaining solid, investors are now counting on the second quarter earnings season to fuel the market rally.
PepsiCo gained 1.86% after raising its full-year revenue and profit forecast, betting on demand and rising prices.
Delta Air Lines advanced 1.88% after raising its profit target for the full year. Competing airlines American Airlines and United Airlines take 1.51% to 2.72% respectively.
Overall, S&P-500 component earnings are expected to have fallen 6.4% in the second quarter, according to Refinitiv data.
(Laetitia Volga, editing by Kate Entringer)
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