WASHINGTON: Wall Street was in a sunny mood early Wednesday, rallying after a batch of friendly inflation data as investors looked to end a streak of lower closes.
The closely watched Consumer Price Index showed relatively tame inflation pressures, cooling fears of faster rate hikes from the Federal Reserve.
Meanwhile, oil prices showed signs of life after a record 12-day stretch of declines.
About 10 minutes into the day’s trading, the benchmark Dow Jones Industrial Average and broader S&P 500 were up 0.8 percent to 25,475.50 and 2,742.85, respectively.
The tech-heavy Nasdaq added 0.9 percent, rising to 7,266.57.
The October inflation figures showed energy prices rising over the month but overall consumer prices remaining stable on an annual basis.
Gregori Volokhine of Meeschaert Financial Services told AFP more recent declines in crude and home heating oil prices could hold down CPI for November.
“These figures are suggest inflation will rather decline, which is rather positive for the market,” he said.
Benchmark crude in New York was up 1.6 percent in early trading, with the price gains translating into higher share prices for producers: Exxon Mobil rose 1.3 percent and fellow Dow member Chevron gained 1.9 percent.
Department store chain Macy’s fell 0.2 percent despite beating earnings expectations and raising its full-year outlook
Marijuana producer Tilray also fell 2.9 percent, even though it too beat expectations by posting a smaller-than-expected loss due to soaring revenues. —AFP