Wall Street wakes up higher after lower-than-expected inflation

The New York Stock Exchange opened Tuesday's session higher, benefiting from lower-than-expected inflation.

Among the benchmark indexes, the technology-rich Nasdaq rose 0.56%, the industrial Dow Jones gained 0.54% and the S&P 500 advanced 0.43% in the first few minutes.

At issue is the Consumer Price Index, which recorded a year-on-year increase of 2.7% in July, the same as in May but 0.1 percentage points below expectations. This means that markets had discounted an acceleration in prices, which ultimately did not materialize.

According to an analysis by Millenium Investment Banking's Equity Markets Department, "Wall Street markets opened higher, responding to the July inflation reading. Investors were anticipating an acceleration in prices; however, the reading remained at 2.7% (est. 2.8%)," it notes.

" Core inflation, which excludes more volatile items such as food and energy, accelerated more than expected to 3.1% (est. 3%), although it showed a weak increase in product prices, allaying some concerns about the pressure of the trade war on prices," the analysts write, before looking at the business ecosystem.

"Sea, Circle, Tencent Music, Pubmatic, and Bigbear.ai react to results. The semiconductor sector may be in focus after press rumors suggest China is halting orders of Nvidia's H20 chips, citing security concerns," it adds.