US Stocks Open Higher After Fed’s Inflation Indicator Softens


US stocks opened Friday with gains after the Federal Reserve’s preferred inflation indicator and core personal consumption expenditures (PCE) price index softened in June.

The Dow Jones was up 151 points, or 0.43%, to 35,434 at 9.47 a.m. EDT (1347GMT). The blue-chip index closed Thursday lower to end its 13-day winning streak, which was the longest since January 1987.

The S&P 500 added 33 points, or 0.75%, to 4,571 and the Nasdaq jumped 194 points, or 1.39%, to 14,244.

The core PCE price index rose 4.1% annually in June, down from a 4.6% year-on-year gain in May, according to the Commerce Department figures released earlier. On a monthly basis, the index rose 0.2% in June, also easing from a 0.3% monthly gain in May.

The PCE price index, which includes food and energy prices, rose 3% annually in June, also easing from a 3.8% year-on-year gain in May.

The VIX volatility index, also known as the fear index, fell 6.4% to 13.49. The 10-year US Treasury yield, meanwhile, fell 1% to 3.976%.

The dollar index decreased 0.1% to 101.69, while the euro increased 0.3% to $1.1002 against the greenback.

Precious metals were in the positive territory, with gold adding 0.6% to $1,957 per ounce and silver rising 0.7% to $24.29.

Oil prices were down around 0.5%, with global benchmark Brent crude at $83.30 per barrel and US benchmark West Texas Intermediate at $79.62.

Source: AA