- January 13, 2023
- Posted by: Bastion team
- Category: World News
U.S. stocks edged higher Thursday as investors digested fresh inflation data that showed prices increased at a slower annual rate in December, a report that was in line with expectations from economists.
The S&P 500 (^GSPC) added 0.3%, while the Dow Jones Industrial Average (^DJI) rose 0.6%. The technology-heavy Nasdaq Composite (^IXIC) also increased about 0.6%.
U.S. Treasury yields ticked down. The yield on the benchmark 10-year U.S. Treasury note fell to 3.4% from the 3.5% Thursday morning. The dollar index fell 0.9% to $102.25.
The moves came after data from the Bureau of Labor Statistics showed prices in December decreased 0.1% over the prior month but increased 6.5% over the prior year. That was in line with expectations, as year-over-year inflation cooled from 7.1% a month earlier.
Core CPI, excluding volatile food and energy components, prices climbed 5.7% year-over-year and 0.3% over the prior month. The core CPI reading came in line as expected from Bloomberg economist forecasts.
The report will factor heavily into the Federal Reserve’s next monetary policy meeting, which starts Jan. 31. Central bankers have made clear they aren’t done with interest rates increases. Fed Chair Jerome Powell stressed on Tuesday the importance of stable inflation, which could lead the central bank to take actions that are necessary, even if not popular.
On Wednesday, Boston Federal Reserve leader Susan Collins supported a 0.25 point interest rate increase at the central bank’s…