Wall Street opened higher despite inflation data in the United States: unemployment benefits requests fell.

source: business-standard.com

Weekly claims for unemployment benefits, which hit a new pandemic low for the sixth week in a row, injected optimism into the New York stock market.

Wall Street opened this Thursday in green and its main indicator, the Dow Jones Industrials, rose 0.62% despite knowing higher than expected inflation data.

At 14:00 GMT, the Dow Jones was up 0.62% on the New York Stock Exchange, while the S&P 500 was up 0.62%.

For its part, the Nasdaq market composite index rose 0.78%.

By sectors, the gains were led by energy (1.55%), financial (0.9%), and basic materials (0.83%) companies.

Wall Street reacted with purchases of the consumer price index (CPI), which rose 0.6% in May and has placed year-on-year inflation at 5%, the highest registered in the United States since August 2008.

Among the thirty values ​​of the Dow Jones, in the first hour, the increases of Boeing (2.03%), Dow Inc (1.70%), Chevron (1.57%), and Goldman Sachs (1.52%) stood out.

Only Apple (-0.35%), Nike (-0.09%) and Salesforce (-0.07%) fell slightly .

However, the increase in prices in the United States weighed on the New York stock market last month due to the possibility that costs for companies will skyrocket and the Federal Reserve changes its policy.

"The CPI will probably not drastically change the narrative, and there are still indications that the rise in inflation will subside in the coming months, " said Vital Knowledge analyst Adam Crisafulli.

However, the bad news about inflation was tempered by encouraging data on weekly claims for unemployment benefits, which hit a new pandemic low for the sixth consecutive week. The Labor Department said Thursday, albeit at a slower pace than expected.

In the week ending June 5, 376,000 new seasonally-adjusted claims were filed, the data showed, more than analysts had predicted, but 9,000 fewer than the previous week's unrevised total.

The data offers further evidence that workers who lost their jobs due to business restrictions caused by Covid-19 are re-employed, with the help of vaccination campaigns that have made daily life safer.

But in an indicator of the cure to be made, the report showed that more than 15.3 million were receiving unemployment assistance in the week ending May 22, although that was about 95,000 less than the week before.

Texas oil rose to $ 70.50 a barrel; the 10-year Treasury yield rebounded to 1.514%; gold fell to 1,893.60 dollars an ounce, and the dollar gained ground against the euro, with a change of 1.2157.