Financials News

US stocks bounce as inflation edges higher

US stocks bounce as inflation edges higher

New York: Wall Street stocks bounced early Thursday following two days of pressure and after US data suggested higher inflation in February.

About 20 minutes into trading, the Dow Jones Industrial Average was at 23,988.79, up 0.6 percent.

The broad-based S&P 500 rose 0.4 percent to 2,614.63, while the tech-rich Nasdaq Composite Index advanced 0.1 percent to 6,956.20.

The Personal Consumption Expenditures price index rose 1.8 percent year over year. The core 12-month index moved up to 1.6 percent, which excludes energy and food prices, its highest level in 10 months.

The data is closely monitored by the Federal Reserve, which has set a two percent target for core prices in setting monetary policy and has been scrutinizing whether accelerating growth and inflation should lead to faster interest rate hikes.

Weakness among technology shares have hit markets this week, with the Nasdaq falling especially hard the last two days.

Markets will be closed Friday for the Good Friday holiday.

AFP