US stocks rise as inflation eases
Xinhua
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NEW YORK, Jan. 12 (Xinhua) -- Wall Street's major averages climbed on Thursday as investors cheered signs of cooling in U.S. inflation.

The Dow Jones Industrial Average rose 216.96 points, or 0.64 percent, to 34,189.97. The S&P 500 added 13.56 points, or 0.34 percent, to 3,983.17. The Nasdaq Composite Index increased 69.43 points, or 0.64 percent, to 11,001.10.

Eight of the 11 primary S&P 500 sectors ended in green, with energy and real estate up 1.87 percent and 1.09 percent, respectively, outpacing the rest. Consumer staples dipped 0.79 percent, the worst-performing group.

The U.S. Labor Department reported Thursday that the country's consumer price index (CPI) fell 0.1 percent in December, in line with the consensus, for a 6.5 percent year-on-year increase, following a 7.1 percent year-on-year increase in November. The core CPI, which excludes food and energy, rose 0.3 percent, also in line with expectations, for a 5.7 percent year-on-year increase.

"Core CPI falling back below 6 percent would be a step in the right direction, but inflation remains far above the 2 percent target," UBS analysts said, adding that "we continue to believe that it's too early for an imminent Fed pivot and the conditions are not yet in place for a sustainable equity rally."

Will Compernolle, senior economist at FHN Financial, said "the Fed will still proceed cautiously as it monitors 'sticky' inflation components like core services."

The Federal Reserve has been raising interest rates since last March in an effort to bring inflation under control.

Fed officials have reiterated this week that rates are likely to remain at their peak level for some time before easing starts.