Key facts
- US stock indexes opened higher on Friday, aiming to end a rough week positively.
- Consumer prices accelerated in August, with the CPI increasing 0.4% month-on-month and 3.4% year-on-year.
- The Dow Jones Industrial Average rose 0.27% at the open.
- The S&P 500 rose 0.59% at the open.
- The Nasdaq Composite rose 0.80% at the open.
- Higher-than-expected Producer Price Index data from Thursday reinforced inflation concerns.
U.S. stock indexes opened higher on Friday, signaling a potential positive end to a challenging week, even as August's consumer price data indicated accelerating inflation. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite all posted gains at the opening bell.
The Labor Department's Bureau of Labor Statistics reported that the Consumer Price Index (CPI) rose 0.4% in August, following a 0.1% increase in July. On an annual basis, consumer inflation advanced 3.4% through August, matching the previous month's rate.
Analysts offered mixed interpretations of the inflation data. Joe Saluzzi of Themis Trading described the print as "in-line" and unlikely to satisfy either bulls or bears. Bill Adams of Fifth Third Commercial Bank noted that the recent surge in energy prices poses an upside risk to inflation. The national average price for diesel surpassed $6 a gallon for the first time on Thursday.
Market sentiment has been fragile due to fluctuating interest rate expectations and a combination of headwinds, including the Middle East conflict and elevated Treasury yields. The CPI report followed a slightly hotter-than-expected Producer Price Index (PPI) reading on Thursday, which did little to reassure investors. Brian Jacobsen of Annex Wealth Management suggested that if the Federal Reserve hikes rates next week, it should be a symbolic move to assert independence rather than an attempt to fix inflation.
At 8:50 a.m. ET, Dow E-minis were up 0.86%, S&P 500 E-minis were up 0.78%, and Nasdaq 100 E-minis were up 0.91%.
Up to Thursday's close, the S&P 500 was on track for its largest weekly loss since June, and the Dow was headed for its steepest weekly decline since March.