U.S. stocks open higher after July CPI data shows inflation ticks higher for first time in 13 months

U.S. stock indexes opened higher on Thursday after U.S. consumer prices picked up on an annual basis in July, snapping a 12-month streak of slowing increases, but steady monthly readings on underlying price pressures could still deter the Federal Reserve from raising rates. The Dow Jones Industrial Average
DJIA,
+1.00%
rose 267 points, or 0.8%, to 35,395, while the S&P 500
SPX,
+1.04%
gained 0.7% and the Nasdaq Composite
COMP,
+1.19%
advanced 0.9%. U.S. consumer prices rose by 0.2% in July on both a headline and core basis, both in line with the Dow Jones estimate, according to the latest consumer-price index report from the Department of Labor. The core rate omits volatile food and energy costs. However, the yearly rate of inflation rose to 3.2% from to 3% in the prior month, slightly below the 3.3% forecast. Fed-funds futures traders now see less than 10% chance of a September rate rise by the Fed, down from more than 20% a week ago, according to the CME’s FedWatch tool.