US open: Stocks gain as May PCE inflation prints in line

Wall Street jumped on the back of the latest batch of economic data which showed inflationary pressures moderated as expected in May.

In particular, the inflation data was "much better than of late", Ian Shepherdson , chief economist at Pantheon Macroeconomics said.

Michael Hartnett at BofA on the other hand drew a comparison between the April unemployment rate of 3.4% and the all-time low of 0.7% hit during that same month in 1929.

Hartnett also noted how the market capitalisation of the so-called 'Big Tech 7' of over $7.0trn was more than the size of all emerging market economies with a combined population of over 6.5bn.

At 1523 BST, the Dow Jones Industrials was climbing 0.72% to 34,368.07, alongside a 1.1% gain for the S&P 500 to 4,444.33, while the Nasdaq Composite 1.52% at 13,797.10.

The yield on the benchmark 10-year US Treasury meanwhile was off by two basis points to 3.831%.

Shepherdson also noted how the latest figures pointed to a slowdown in consumption growth from 4.2% annualised in the first three months of 2023 to 1.0% in the second quarter.

As an aside, the same economist was anticipating softer-than-expected readings for June non-farm payrolls and consumer prices, which he believed would deter the central banking from hiking rates in July.

He put the odds of a hike at 40% for that meeting and added "and if they don't hike in July, they're probably done".

In parallel, the University of Michigan reported a slightly higher-than-expected rise in consumer expectations during the same month.

Yet whereas inflation expectations for the year ahead staged a big decline those for the longer-run remained near the same levels as seen over the past two years roughly.

Dow Jones - Risers

Microsoft Corp. (MSFT) $342.21 2.14%
American Express Co. (AXP) $174.94 1.66%
Apple Inc. (AAPL) $192.68 1.63%
Salesforce.Com Inc. (CRM) $213.59 1.50%
Intel Corp. (INTC) $33.36 1.37%
Visa Inc. (V) $237.49 1.35%
Walmart Inc. (WMT) $156.25 1.28%
Cisco Systems Inc. (CSCO) $51.85 1.24%
Travelers Company Inc. (TRV) $172.98 1.16%
JP Morgan Chase & Co. (JPM) $144.77 0.93%

Dow Jones - Fallers

Nike Inc. (NKE) $111.73 -1.45%
Unitedhealth Group Inc. (UNH) $476.09 -0.07%
Verizon Communications Inc. (VZ) $36.97 -0.05%
Dowdupont Inc. (DWDP) $0.00 0.00%
International Business Machines Corporation (CDI) (IBM) $134.09 0.02%
Walt Disney Co. (DIS) $89.07 0.14%
Coca-Cola Co. (KO) $60.13 0.17%
Boeing Co. (BA) $212.24 0.19%
Walgreens Boots Alliance, Inc. (WBA) $28.43 0.21%
Goldman Sachs Group Inc. (GS) $324.17 0.33%

S&P 500 - Risers

Vornado Realty Trust (VNO) $18.41 6.91%
Carnival Corp. (CCL) $18.34 6.88%
CenturyLink Inc. (LUMN) $2.31 5.00%
Nvidia Corp. (NVDA) $423.46 3.73%
Sl Green Realty Corp. (SLG) $29.92 3.60%
Netflix Inc. (NFLX) $442.44 3.32%
Oracle Corp. (ORCL) $121.11 2.83%
Align Technology Inc. (ALGN) $351.45 2.83%
Microchip Technology Inc. (MCHP) $89.33 2.70%
FMC Technologies Inc. (FTI) $16.75 2.67%

S&P 500 - Fallers

Nike Inc. (NKE) $111.73 -1.45%
Constellation Brands Inc. Class A (STZ) $244.17 -1.09%
Ventas Inc. (VTR) $47.13 -1.03%
Apartment Investment & Management Co. (AIV) $8.45 -1.00%
Micron Technology Inc. (MU) $63.79 -0.84%
Foot Locker Inc. (FL) $26.75 -0.73%
Macerich Co (MAC) $11.27 -0.70%
International Paper Co. (IP) $31.49 -0.60%
J.B. Hunt Transport Services Inc. (JBHT) $181.41 -0.58%
FedEx Corp. (FDX) $248.76 -0.49%

Nasdaq 100 - Risers

Nvidia Corp. (NVDA) $423.46 3.73%
Netflix Inc. (NFLX) $442.44 3.32%
Align Technology Inc. (ALGN) $351.45 2.83%
Microchip Technology Inc. (MCHP) $89.33 2.70%
Sirius XM Holdings Inc (SIRI) $4.44 2.54%
Amazon.Com Inc. (AMZN) $131.07 2.48%
Tesla Inc (TSLA) $263.61 2.37%
Analog Devices Inc. (ADI) $193.86 2.31%
Meta Platforms Inc. (META) $287.88 2.26%
Microsoft Corp. (MSFT) $342.21 2.14%

Nasdaq 100 - Fallers

Micron Technology Inc. (MU) $63.79 -0.84%
NetEase Inc. Ads (NTES) $97.32 -0.68%
J.B. Hunt Transport Services Inc. (JBHT) $181.41 -0.58%
Qurate Retail Inc. (QRTEA) $1.01 -0.50%
Intuit Inc. (INTU) $454.86 -0.21%
Regeneron Pharmaceuticals Inc. (REGN) $707.00 -0.20%
Henry Schein Inc. (HSIC) $80.77 -0.16%
Check Point Software Technologies Ltd. (CHKP) $127.82 -0.09%
Maxim Integrated Products Inc. (MXIM) $0.00 0.00%
Mylan Inc. (MYL) $0.00 0.00%