US: Stocks up as Fed meeting looms; inflation weak

[NEW YORK] Wall Street stocks rose in opening trade Wednesday as the markets digested a weak reading on consumer prices ahead of a key Federal Reserve interest rate decision.

Five minutes into trade, the Dow Jones Industrial Average stood at 16,639.80, up 39.95 points (0.24 per cent).

The broad-based S&P 500 advanced 5.04 (0.25 per cent) to 1,983.13, while the tech-rich Nasdaq Composite Index added 9.81 (0.20 per cent) at 4,870.33.

The Labour Department said its consumer price index fell 0.1 per cent in August, dragged lower by tumbling gasoline prices.

The fresh data signalled a continued lack of inflationary pressure that would support the Fed undertaking its first rate hike in more than nine years.

Traders see a 30 per cent chance the Fed will raise interest rates Thursday, up from 25 per cent Tuesday morning, said a note from Wells Fargo Advisors.

AFP