Wall Street Opens Higher as Inflation Data Meets Expectations
What Happened
US stocks opened in the green after August inflation data came in largely as expected. The Consumer Price Index (CPI) rose 0.4% month-on-month and 3.4% year-on-year, matching forecasts. The S&P 500 gained around 1.1%, while Dow futures pointed to a gain of more than 400 points and Nasdaq futures were up about 0.5% before the opening bell. Tech stocks including Apple and Alphabet helped drive the rebound after four consecutive losing sessions.
Key Takeaways
Investors welcomed the inflation reading as it eased fears of a major surprise ahead of the next Federal Reserve policy meeting. However, rising oil prices and expectations of a possible rate hike continue to keep markets cautious.