NEW YORK: Wall Street stocks rose early Thursday, extending a positive trading stretch as markets weigh recent drops in commodity prices against recession risk.

The prices of oil, copper and other key commodities have tumbled from recent peaks, a drop tied to the weakening growth outlook.

The retreat in prices for key raw materials could alter the calculus of major central banks that have moved aggressively to raise interest rates to tamp down inflation.

Art Hogan of National Securities also pointed to relief in wage pressure and elevated product inventories at retail giants Target and Walmart as factors blunting pricing pressure.

“The bottom line is that inflation may stay elevated for another month or two,” Hogan said in a market note. “Still, given the above trends, the probability is rising that inflation going into the second half of this year could come down faster than the market currently expects.”

About 20 minutes into trading, the Dow Jones Industrial Average was up 0.9 percent to 31,321.94.

Wall Street slips ahead of Fed meeting minutes

The broad-based S&P 500 gained 1.1 percent to 3,887.07, while the tech-rich Nasdaq Composite Index advanced 1.4 percent to 11,516.19.

The S&P 500 and Nasdaq have risen the last three days.

Markets are looking ahead to Friday’s all-important government jobs report, expected to show job growth slowing, with the US economy adding 250,000 positions in June and the unemployment rate holding steady at 3.6 percent.