US open: Stocks higher despite hotter-than-expected CPI report
By Iain Gilbert
Date: Thursday 11 Sep 2025
(Sharecast News) - Wall Street trading got off to a positive start on Thursday as market participants digested August's all-important consumer price inflation report.
As of 1435 BST, Dow Jones Industrial Average was up 0.36% at 45,655.33, while the S&P 500 advanced 0.32% to 6,553.20 and the Nasdaq Composite came out of the gate 0.39% firmer at 21,972.41.
The Dow opened 164.41 points higher on Thursday, taking a bite out of losses recorded in the previous session.
Thursday's primary focus was news that US consumer prices rose more than expected in August, according to the Bureau of Labor Statistics' closely watched consumer price index, driven by higher shelter, food and energy costs. Headline CPI rose 0.4% month-on-month, up from 0.2% in July, pushing the annual rate up to 2.9% from 2.7%, with shelter costs being the largest contributor to the monthly increase, rising 0.4%, while food prices climbed 0.5%, led by a 0.6% rise in grocery items and a 0.3% uptick in dining out. Energy prices rose 0.7%, with gasoline up 1.9% over the month. Core CPI, which strips out volatile food and energy prices, rose 0.3% for the second consecutive month, lifting the annual rate to 3.1%. Notable increases were seen in airline fares, used vehicles, apparel and new cars, while medical care, recreation and communication posted declines.
Today's CPI reading comes just 24 hours after August's producer price index revealed an unexpected decline of 0.1%. On an annualised basis, PPI rose 2.6%. It also adds pressure to the Federal Reserve ahead of next week's two-day policy meeting, where markets have already priced in a potential 25 basis point rate cut.
Elsewhere on the macro front, Americans lined up for unemployment benefits at an accelerated pace last week, according to fresh data from the Department of Labor, hitting the highest level for initial claims since October 2021. Initial jobless claims surged by 27,000 to a seasonally adjusted 263,000 in the week ended 6 September, well above consensus forecasts of a modest decrease to 235,000, while continuing claims, which track those still receiving benefits, was unchanged at 1.93m, better than the 1.95m expected. The four-week moving average, which aims to strip out week-to-week volatility, came to 240,500, up by 9,750 from the previous week's downwardly revised print of 230,750.
Still to come, the Federal Government's August monthly budget statement will follow at 1900 BST.
In the corporate space, Kroger reported a solid set of second-quarter results on Thursday, with adjusted earnings per share rising 12% year-on-year and operating profits climbing to $863m.
Adobe will report its latest set of quarterly earnings after the close.
Reporting by Iain Gilbert at Sharecast.com
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