The U.S. stock market started the day on a positive note as investors analyzed a recent report concerning the Federal Reserve's preferred inflation gauge. At the opening bell, the Dow Jones Industrial Average (DJIA) surged by 0.6%, while the S&P 500 (SPX) and the Nasdaq Composite (COMP) both recorded modest gains of 0.1% each, as reported by FactSet data.
Inflation Remains Stable, But Shows Yearly Increase
According to a report released on Thursday by the Bureau of Economic Analysis, inflation, as measured by the personal-consumption-expenditures price index, remained unchanged in October. However, on a year-over-year basis, it increased at a rate of 3%, signifying a slight slowdown. The core price index, which excludes food and energy prices, experienced a modest growth of 0.2% last month, resulting in a year-over-year increase of 3.5%. This represents a deceleration from the 3.7% annual core inflation recorded in September.
Treasury Yields Rise Following Inflation Data
Following the release of the inflation report, there was an increase in Treasury yields. FactSet data indicates that the yield on the 10-year Treasury note rose by five basis points to approximately 4.32% at the time of publishing.
This positive market sentiment demonstrates investors' cautious optimism in the face of changing economic indicators.