New York stocks opened higher as the August consumer price index (CPI) largely matched market expectations.
As of 9:44 a.m. on the 11th (local time) on the New York Stock Exchange, the Dow Jones Industrial Average was up 545.27 points (1.05%) at 52,609.37. The Standard & Poor's (S&P) 500 rose 72.82 points (0.96%) to 7,664.52, and the Nasdaq composite gained 276.45 points (1.06%) to 26,358.17.
The U.S. CPI for August released that day largely matched market expectations. According to the Labor Department, the August all-items (headline) CPI rose 0.4% from the previous month on a seasonally adjusted basis and 3.4% from a year earlier, with both figures in line with market forecasts.
However, core CPI, which excludes the more volatile food and energy categories, rose 0.3% from the previous month, slightly above the 0.2% expected. It increased 2.4% from the same month a year earlier, matching market forecasts.
The CPI release also increased the likelihood of rate hikes, yet stocks strengthened instead. The move is seen as the market having already priced in much of the Federal Reserve's potential rate increases.
According to the Chicago Mercantile Exchange (CME) FedWatch tool, as of 9 a.m. that day, the federal funds rate (FFR) futures market was pricing an 85.6% chance that rates will be raised by September. The previous day it was 72.4%.
In addition, West Texas Intermediate (WTI) fell more than 3%, dropping below $100 a barrel, which also supported stocks.
Jeff Schulze, chief investment strategist at Franklin Templeton Institute, said, "These figures strengthen the case for multiple rate hikes in the short term," and added, "Because stock and bond investors have already prepared to a significant extent for the start of the Fed's rate-hike cycle, it is unlikely to be a factor that has a major impact on risk asset."
Most sectors advanced. Oracle rose 2.36% after posting results that beat market expectations the previous day. For the first quarter of fiscal 2027, Oracle reported adjusted earnings per share (EPS) of $1.92 and revenue of $19.35 billion, topping estimates of $1.74 and $19.14 billion, respectively. In particular, revenue from cloud infrastructure (OCI), closely tied to its data center business, surged 121% from a year earlier.
GameStop gained 3.43% after Chief Executive Officer (CEO) Ryan Cohen disclosed that he purchased 1 million of the company's shares at an average of $20.375 per share. Cohen's holdings increased to 39,347,000 shares.
Adobe fell 2.58% after issuing a revenue outlook that missed market expectations. Adobe guided fourth-quarter revenue to $6.8 billion to $6.85 billion. The market forecast was $6.85 billion.
Major European stock indexes also rose across the board. The Euro Stoxx 50 was up 0.88% at 6,324.34 from the previous session. Britain's FTSE 100 and France's CAC 40 climbed 0.93% and 1.05%, respectively, and Germany's DAX also rose 0.76%.