Wall Street opens higher after US inflation drops in July

Wall Street stocks opened in positive territory on Wednesday, with the Dow Jones Industrial Average rising 0.18% following the release of July inflation figures. The positive sentiment was driven by a decrease in the U.S. Consumer Price Index (CPI), which fell to 3.4% for the month.

Ten minutes after the market opened, the Dow stood at 53,887 points. The S&P 500 gained 0.27% to reach 7,748 points, and the tech-heavy Nasdaq advanced 0.51% to 26,579 units. The CPI's decline was primarily influenced by a drop in energy prices, aligning with analyst expectations for continued fuel cost decreases after a peak caused by the conflict in Iran.

Underlying inflation, which excludes volatile energy and food components, also saw a reduction, falling to 2.5%, a tenth of a percent lower than in June, according to the Bureau of Labor Statistics (BLS). While this figure remains above the Federal Reserve's 2% target, it represents a significant decrease from the 4.2% peak recorded in May, which was the highest since April 2023.

In corporate news, technology companies experienced gains. Micron Technology shares were up 4%, Dell rose 4%, and Cisco Systems increased by 2% in early trading. Meanwhile, oil prices saw a slight uptick, with West Texas Intermediate (WTI) crude opening 0.02% higher at $83.22 per barrel.