US STOCKS GAIN AS INFLATION HOLDS STEADY

US stocks rose on Wednesday after new data showed that inflation remained stable in August, while private-sector hiring increased more than expected.

The Federal Reserve’s preferred inflation gauge stood at 3.4 per cent year-on-year in August, unchanged from the previous month following a revision to July’s figure.

The data showed price increases were lower than expected, although inflation remained above the Federal Reserve’s target.

About 20 minutes after trading began, the Dow Jones Industrial Average was up 0.1 per cent at 51,386.46.

The S&P 500 gained 0.4 per cent to 7,699.89, while the Nasdaq Composite rose 0.6 per cent to 26,958.66.

Markets also responded to private-sector employment data from payroll firm ADP, which showed that employers added 90,000 jobs during the month, up from 38,000 previously and above market expectations.

The US Commerce Department also revised its estimate for second-quarter economic growth upward by 0.7 percentage points to 2.2 per cent.

Investors were watching the inflation and employment figures for indications of the direction of US monetary policy and the broader strength of the economy.

The latest market movement came as investors continued to assess economic data and its potential implications for interest rates.