Investing.com -- U.S. stocks are rising after better-than-expected news on inflation for May.
At 10:18 ET (14:18 GMT), the Dow Jones Industrial Average was up 259 points or 0.7% while the S&P 500 was up 1.1% and the NASDAQ Composite was up 1.6%.
Stocks are set to end the month, quarter, and first half of the year on a high note after inflation data for May came in cooler than forecasts. The personal consumption expenditure index, the Fed's preferred inflation gauge, rose 3.8% compared to a 4.3% rise in April.
Excluding the volatile food and energy components, PCE rose 0.3% after rising 0.4% the month before.
Cooling inflation a factor for Fed rate deliberation
Evidence that prices are cooling is one factor the Federal Reserve is likely to consider when it next meets in July to decide on interest rates. Futures traders are betting on a greater than 85% probability that the Fed will raise rates another quarter of a percentage point, even after pausing on rate hikes this month.
Chair Jerome Powell has said that more rate increases are likely as the Fed works to lower inflation, which is still running more than twice as high as the 2% target. He also said he doesn’t believe inflation will get to that target this year or next year.
Apple hits $3 trillion mark during session
The three stock indexes are on track to end the month and the second quarter on a high note. Investors are discounting the possibility of a recession even as the Fed continues on an aggressive tightening trajectory.
Shares of Apple Inc (NASDAQ:AAPL) rose 1.6% and topped the $3 trillion mark. If the stock stays above $190.73 by the close of trading, it will make Apple the first member of the $3 trillion valuation club.
Nike misses on first-quarter outlook
Shares of athletic apparel maker Nike Inc (NYSE:NKE) fell 1.3% after its first-quarter forecast fell below expectations though it said inventory was improving after using discounts to move out extra merchandise.
Oil was rising. Crude Oil WTI Futures were up 1.1% to $70.61 a barrel, while Brent Oil Futures were up 1.1% to $75.33 a barrel. Gold Futures were up 0.3% to $1,924.