US stocks open higher as inflation worries ebb

A street sign, Wall Street, is seen outside New York Stock Exchange (NYSE) in New York City, New York, January 3, 2019. — Reuters pic
A street sign, Wall Street, is seen outside New York Stock Exchange (NYSE) in New York City, New York, January 3, 2019. — Reuters pic

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NEW YORK, June 11 — Wall Street stocks advanced early today and added to records as markets maintained an optimistic interpretation of the latest US inflation reading.

Data released yesterday showed the inflation rate at its highest level in 13 years, but the S&P 500 still finished the day’s trading at a record.

“What the market seemed to sniff was peak inflation,” said Briefing.com analyst Patrick O’Hare, noting a drop on the yield on the 10-year US Treasury on Thursday and again early Friday.

The reaction suggests investors broadly support the Federal Reserve’s view that higher inflation will prove transient and not necessitate a sharp shift in monetary policy.

About 15 minutes into trading, the Dow Jones Industrial Average was up 0.2 per cent at 34,534.00

The broad-based S&P 500 added 0.1 per cent at 4,244.60, while the tech-rich Nasdaq Composite Index also climbed 0.1 per cent to 14,038,34.

For the week, the Dow is on track to finish with modest losses, while the S&P 500 and Nasdaq have gained. 

Next week’s calendar includes a two-day Fed meeting that will update the market on when the central bank will consider scaling back its stimulus measures. — AFP

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