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U.S. stocks are rising after cooler-than-expected inflation data as Fed meets

AuthorLiz Moyer
Published 06/13/2023, 09:55 AM
Updated 06/13/2023, 10:41 AM
© Reuters.

Investing.com -- U.S. stocks were rising after cooler-than-expected inflation as the Federal Reserve starts its two-day policy meeting.

At 10:38 ET (14:38 GMT), the Dow Jones Industrial Average is up 146 points or 0.4%, while the S&P 500 is up 0.5% and the NASDAQ Composite is up 0.5%.

Data out this morning showed inflation rising 4% in May from last year, a cooler pace than expected. Without food and fuel, prices rose 5.3% from last year, meeting expectations.

Cooler-than-expected inflation could encourage the Federal Reserve to hold off on another interest rate increase this week, as policymakers head into their two-day meeting today. Futures markets have anticipated the probability of a pause while Fed officials step back to assess how their actions have worked so far. The Fed has raised rates at its 10 last meetings.

But a pause doesn’t necessarily mean the Fed will be done for good. Many expect it will return to rate increases in July if inflation doesn’t show signs of returning toward its 2% target.

Investors will be listening closely to what Fed Chair Jerome Powell says during his press conference on Wednesday after the Fed releases its rate policy decision and its latest set of forecasts about inflation, unemployment and economic output.

Tech stocks have led indexes higher, pulling the S&P 500 out of a bear market to a fresh 52-week high on Monday. Big tech firms including Meta Platforms (NASDAQ:META) and the electric vehicle maker Tesla (NASDAQ:TSLA) are helping to lead the group, while Apple (NASDAQ:AAPL) notched a new record high.

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Shares of Oracle Corporation (NYSE:ORCL) rose 2.3% after it beat quarterly revenue estimates and forecast an upbeat future, while shares of chip maker Intel Corporation (NASDAQ:INTC) rose 1.5% after it started talks with SoftBank Group’s (TYO:9984) Arm to be an anchor investor in its initial public offering.

Home Depot Inc (NYSE:HD) shares are down 0.1% as the company kicked off its investor day.

Latest comments

core CPI rose! ... unfortunately FED is sailing these propaganda winds of passing pausing pausing
Hi, can anyone relate the bullish gold with the CPI news (weak data for USD)? beginner to learn news and impact.
*correction BEARISH not bullish
Inflation rate was not higher than expected, so market is less worried about holding USD and need less gold for inflation hedge.
Great! Now a case of beer will cost me $19.98 instead of $20.
The fraud and criminal manipulation is heading back to record levels, as Wall Street financially defiles America in broad daylight.
hold on kiddos. there is enough fraud to to along for everyone. just open a box frosty fraud flakes with tony the tiger there great
Change news to Market is always rising, today less rising versus more rising you should make.
"Market is always rising"  --  No.  There have been bear markets.
Market is too brutally off the trend. It must mega sell off by now
'expectations', we all know what that means. That's the key word to manipulate the market
All the CPI indexes are showing increased inflation despite the contradictory CPI number.
 Core inflation is up 5.3%. The economic numbers during the Biden admin has also been notorious for being false, where they go back the following quarter and revise the previous quarter. People should go back and look at previous numbers/revisions to see the intentional manipulation.
The NASDAQ is up 12% over the past 30 days, and up 36% YTD. They have factored in near certainty of no rate hike. P/E's are at levels that have preceded every prior recession. The upside from here with VIX near 5-year baseline is nothing compared to the potential downside. Best of luck to anybody trying to decide whether they should hold positions going into FOMC.
Core inflation is up 5.3%, even if they Fed plays games and does not raise this month, rates are going to end up 7%+ because we still have a demented potato in the White House with socialist puppet masters for another 1.5 years.
Nice try Shortie.
When molten steel poured into an ingot starts to harden it's called cooling. Inflation is cooling but is still too hot to handle.
core cpi is rising! fed must raise rates
"core cpi is rising" is the norm.
yeah, but they aren't interested in us, total bull-loney.
Based on the June 2022 CPI-U Index of 296.3, I look for June CPI rate to come in around 305.5 / 296.3 = 3.1%.
Would be absolutely reckless for the FED to raise rates now
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