US stocks open higher as Fed's inflation indicator softens

ISTANBUL

US stock exchanges opened higher on Friday, as Federal Reserve's preferred inflation indicator softened both annually and monthly in May, which could allow the central bank to start rate cuts as early as September.

The Dow Jones Industrial Average was up 190 points, or 0.48%, to 39,353 at 10.05 a.m. EDT (1405). The S&P 500 rose 31 points, or 0.59%, to 5,514.

The Nasdaq, meanwhile, increased 134 points, or 0.75%, to 17,990.

The core personal consumption expenditures (PCE) price index annually rose 2.6% in May, down from the 2.8% year-on-year gain in April. On a monthly basis, the core PCE price index increased 0.1% in May, also slowing its pace from a 0.3% month-on-month increase in April.

The slowing figures indicate that the pace of inflation is decelerating in the world's biggest economy, and the Fed could start lowering interest rates as early as September.

The VIX volatility index, also known as the fear index, lost 0.25% to 12.21. The 10-year US Treasury yield fell 0.3% to 4.277%.

The dollar index was steady at 105.92, while the euro shed 0.1% to $1.0692 against the greenback.

Precious metals were in the green, with gold rising 0.1% to $2,334 per ounce and silver increasing 1.3% to $29.36.

Oil prices were down around 0.5%, with global benchmark Brent crude at $84.88 and US benchmark West Texas Intermediate at $81.33.