US stocks trade at high levels after CPI report shows easing June inflation
Istanbul, July 11 (Hibya)—Stocks were little changed after new data showed the inflation rate fell to its lowest level in more than three years in June, bolstering the case for the Federal Reserve to cut rates later this year.
The S&P 500 and the Dow Jones Industrial Average hovered just above the flatline. The Nasdaq Composite gained 0.1 percent.
The consumer price index fell 0.1 percent last month from May, bringing the annual inflation rate down to 3 percent. Economists surveyed by Dow Jones had expected a 0.1 percent monthly increase and a 3.1 percent annual rate. Core CPI, which excludes food and energy, came in at a 3.3 percent annual rate, also lower than economists expected.
The CME FedWatch tool reported that following the CPI data, the odds of a September rate cut rose to greater than 80 percent based on Fed funds futures trading. Traders still see the Fed standing pat at its meeting later this month.
Wall Street is coming off a winning session. The S&P 500 added 1,0 percent on Wednesday to close above 5,600 for the first time, while the Nasdaq Composite advanced 1.18 percent to a record close. The 30-stock Dow gained 429.39 points, or 1.09 percent.
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