On Wednesday, Wall Street stocks increased, and Treasury bonds rallied after the latest US consumer price index report from the Bureau of Labor Statistics.
The data showed headline annual inflation reduced from 6% in February to 5% in March, with economists predicting a reading of 5.1%.
Core inflation, which is preferred by the Fed because it removes volatile food and energy prices, increased from 5.5% in February to 5.6% in March, in line with economists’ expectations.
The moves in equity markets came as traders reacted to the data, which reduced pressure on the Federal Reserve to keep raising interest rates.
The benchmark S&P 500 gained 0.6% in early trade, with technology and basic material stocks among the best performers.
The tech-heavy Nasdaq Composite added 0.7% shortly after the New York open. The European Stoxx 600 rose 0.4%, and the German Dax and London’s FTSE 100 both gained 0.6%.
Asian equities were mixed, with Japan’s Topix and South Korea’s Kospi up 0.8% and 0.1%, respectively, while Hong Kong’s Hang Seng index fell 0.8%, and China’s CSI 300 was flat.
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