NEW YORK, May 27 — Wall Street stocks rose early today, extending a recent positive run for the market following US data that suggested inflation is moderating.
Commerce Department data showed the personal consumption expenditures (PCE) price index climbed 0.2 per cent after several months of accelerating at more than twice that pace.
The report also showed that expenditures jumped 0.9 per cent, suggesting “US consumers may feel sour about inflation, but they are still spending at a healthy clip,” as Oxford Economics Lydia Boussour put it.
The data gives support to the argument from stock market bulls that the United States economy is moving past — or has progressed from — a period of “peak inflation,” after which there will be less grim consumer price news in the months ahead.
About 30 minutes into trading, the Dow Jones Industrial Average was up 0.8 per cent at 32,880.57.
The broad-based S&P 500 gained 1.4 per cent to 4,116.31, while the tech-rich Nasdaq Composite Index jumped 2.0 per cent to 11,970.10.
Among individual companies, Gap fell 3.6 per cent after reporting a quarterly loss of US$162 million (RM709 million) following weak sales at its Old Navy brand.
Costco Wholesale advanced 1.7 per cent after reporting higher earnings on a 16.3 per cent jump in revenues to US$51.6 million. — AFP