Wall Street Opens Cautiously Higher on Inflation Relief; Dow up 80 Pts By Investing.com

© Reuters.

By Geoffrey Smith 

Investing.com — U.S. stock markets opened cautiously higher on Tuesday after the slowest rise in consumer prices in seven months eased fears that the Federal Reserve will take abrupt action to tighten monetary policy.

Official data showed that prices excluding food and energy rose only 0.1% in August, rather than the 0.3% expected, while the annual core inflation rate fell to 4.0% from 4.3% in July. Overall, prices rose by 0.3% on the month and 5.3% on the year, both marginally lower than expected.

The figures showed cooling demand for used cars, which had been one of the biggest drivers in prices earlier in the year, as well as a drop in airline fares as Covid-19 ate into the strong summer tourist numbers that airlines had been hoping for.  Weakness in those areas was partially offset by a rise in rents, reflecting the surge in house prices over the last year.

By 9:45 AM ET (1345 GMT), the was up 79 points, or 0.2%, at 34,949 points. The was up 0.2% and the was up 0.3%.  

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