US stocks open higher as inflation shows annual slowdown

By Ovunc Kutlu

ISTANBUL (AA) - US stocks opened higher Wednesday as consumer inflation showed an annual slowdown and beat market estimates.

The blue-chip Dow Jones rose 95 points, or 0.28%, to 33,656 at 9.39 a.m. EDT. The S&P 500 added 26 points, or 0.64%, at 4,145.

The tech-heavy Nasdaq increased 126 points, or 1.04%, to 12,306.

Annual consumer inflation in the US came in at 4.9% in April, easing slightly from 5% in March, and beating estimates of a 5% gain, according to figures released by the Labor Department.

The slowing inflation figure indicates that the Federal Reserve could pause rate hikes in the second half of 2023 after rapidly increasing its benchmark interest rate by an unprecedented 500 basis points in the past 14 months to lower record inflation.

The latest consumer inflation figure is a significant slowdown from the 9.1% annual gain recorded last June, which was the largest 12-month increase since November 1981.

The VIX volatility index, also known as the fear index, plummeted almost 4% to 17.01. The 10-year US Treasury yield, meanwhile, fell 1.71% to 3.462%.

The dollar index was down 0.2% to 101.42, while the euro increased 0.14% to $1.0976 against the greenback.

Precious metals were up slightly, with gold adding 0.1% to $2,036 per ounce and silver rising 0.1% to $25.64.

Oil prices fell around 1.2%, with global benchmark Brent crude at $76.53 per barrel and US benchmark West Texas Intermediate at $72.73.