NEW YORK: US stocks rose in early trading Thursday after official data showed that consumer inflation inched up in July, broadly in line with expectations.

Although inflation picked up for the first time in around a year, at an annual rate of 3.2 percent, the moderate figure could support the case that the central bank can hold rates steady at its next policy meeting.

Around 10 minutes into trading, the Dow Jones Industrial Average was up 0.9 percent at 35,455.03.

Wall Street falls ahead of CPI inflation data

The broad-based S&P 500 advanced 0.9 percent to 4,508.06, while the tech-rich Nasdaq Composite Index increased by 1.0 percent to 13,864.38.

The inflation figure was slightly below the median expectation of analysts surveyed by MarketWatch.

Excluding volatile food and energy prices, consumer inflation ticked down slightly to 4.7 percent.

“There will be some calls that next month’s report won’t look as friendly given the jump in oil and gas prices,” Briefing.com’s chief market analyst Patrick O’Hare wrote in a note on Thursday morning.

“But for the time being, the July report offered enough validation for the Fed not to jump to any rate-hike conclusions,” he added.

Shares of the fashion company Capri Holdings, which owns luxury brands including Michael Kors, surged by more than 50 percent in early trading as well on news it was to be acquired by Coach owner Tapestry.

Tapestry’s shares, meanwhile, fell by almost 12 percent following the news.