US shares surge on Wednesday’s session open driven by slowdown in consumer inflation


(MENAFN) On Wednesday, the US Stock market opened on a positive note, buoyed by a slowdown in consumer inflation for April, both on an annual and monthly basis. The Dow Jones surged by 224 points, marking a 0.57 percent increase to reach 39,782 at 9:43 a.m. EDT, while the S&P 500 also saw gains, rising by 30 points or 0.57 percent to 5,275. Simultaneously, the nasdaq climbed by 91 points or 0.55 percent, reaching 16,602.

Data from the Labor Department revealed that consumer inflation in the US rose by 3.4 percent annually in April, with a monthly increase of 0.3 percent. These figures represented a slowdown from March's gains of 3.5 percent and 0.4 percent, respectively, suggesting a moderation in price pressures.

Reflecting the improved sentiment, the VIX volatility index, often referred to as the fear index, decreased by 2.4 percent to 13.19, while the 10-year US Treasury yield dipped by 1.48 percent to 4.380 percent.

In currency markets, the dollar index experienced a decline of 0.32 percent to 104.67, while the euro strengthened by 0.18 percent against the greenback, reaching USD1.0839.

However, the picture was mixed for precious metals, as gold saw a decrease of 0.2 percent to USD2,353 per ounce, and silver declined by 0.22 percent to USD28.56.

Oil prices witnessed a decline of approximately 1.5 percent, with global benchmark Brent crude trading at USD81.18 per barrel, and US benchmark West Texas Intermediate crude at USD76.82. Despite these fluctuations, the overall market sentiment remained positive, driven by the tempered inflation figures and optimism surrounding economic recovery.

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