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U.S. stocks may see early strength following inflation data

Stocks may move upwards in early Thursday trading after finishing the previous session slightly lower.Major index futures are currently showing reasonably high open market, The Dow futures are up 120 points.

Futures have recently moved upwards, despite reports from the Ministry of Labor showing higher-than-expected consumer prices in May.

According to the Ministry of Labor, the consumer price index rose 0.8% in April and then 0.6% in May. Economists expected consumer prices to rise 0.4%.

Excluding food and energy prices, core consumer prices rose 0.7% in May, following a 0.9% rise in April. Core prices were also expected to rise 0.4%.

The report also showed that consumer prices in May rose 5.0% compared to the same month last year, reflecting the biggest surge since August 2008.

Core consumer inflation also accelerated to 3.8% in May, the largest increase since June 1992.

The Fed may consider tightening monetary policy due to rising inflation, but traders remain optimistic about the economic outlook.

Add to the positive feelings about Economy, The Ministry of Labor has released another report showing that the initial claims for unemployment benefits have decreased even slightly.

The report showed that initial unemployment claims fell to 376,000, down 9,000 from the unadjusted level of 385,000 last week. Economists expected unemployed claims to drop to 370,000.

With a slight dip, unemployed claims have fallen to their lowest levels again since reaching 256,000 in the week ending March 14, 2020.

In foreign trading, the Asia-Pacific stock market almost rose during Thursday’s trading. Japan’s Nikkei 225 Index rose 0.3% and China’s Shanghai Composite Index rose 0.5%.

Meanwhile, major European markets are performing differently on the day. The UK’s FTSE 100 index is up 0.2%, while the German DAX index is just below the unchanged line and the French CAC 40 index is down 0.2%.

In commodity trading, crude oil futures have risen from $ 0.34 to $ 70.30 after falling from $ 0.09 to $ 69.96 on Wednesday. Meanwhile, gold futures have fallen from $ 7.80 to $ 1,887.70 per ounce after rising from $ 1.10 to $ 1,895.50 per ounce in the previous session.

On the currency side, the US dollar is trading at 109.69 yen, compared to 109.63 yen acquired at the end of the New York transaction on Wednesday. Against the euro, the dollar is valued at $ 1.2191 compared to yesterday’s $ 1.2180.

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U.S. stocks may see early strength following inflation data

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