Stocks Open Higher as Inflation Data and ECB Hold Steady; Oil Tumbles

U.S. stocks opened higher Thursday, lifted by a stronger showing in the Dow Jones Industrial Average, Nasdaq Composite, and S&P 500, as fresh inflation data and steady central bank signals shaped the early market narrative.

The Dow Jones Industrial Average gained 151 points, or 0.33%, to 45,642. The Nasdaq Composite rose 95 points, or 0.43%, to 21,980, while the S&P 500 added 23 points, or 0.35%, to 6,554. The Russell 2000 also climbed modestly, up 0.30% at 237.

WATCH: How quantum computers threaten Bitcoin & Ethereum’s security

The opening moves followed Thursday's report from the U.S. Bureau of Labor Statistics, showing the Consumer Price Index for August rose 0.4%, a sharper gain than July’s 0.2%. Year-over-year inflation accelerated to 2.9%, driven by shelter, food, and energy costs. Core CPI, which strips out food and energy, advanced 0.3%, consistent with July.

Read the Bureau of Labor Statistics CPI Press Release Here

Investors also weighed European Central Bank policy, where officials left rates unchanged in September while revising 2025 growth expectations upward to 1.2%. Inflation projections remained anchored near target, with headline prices forecast at 2.1% next year. The euro, already up about 10% against the dollar this year, has become a focal point for traders betting on diverging paths between the ECB and Federal Reserve

Labor market data, meanwhile, continue to underscore the Fed’s challenge. According to Sage Advisory, August nonfarm payrolls grew just 22,000, well below expectations of 75,000, pulling the three-month average to 30,000. Interest-rate markets are now pricing in as many as six Fed rate cuts by early 2027, with Treasury yields holding steady near 4.3%.

The slowdown is hitting households unevenly. Research from the Bank of America Institute shows after-tax wage growth for lower-income households slowed to 0.9% year-over-year in August, the weakest pace since 2016. Higher-income households, by contrast, saw earnings accelerate to 3.6% YoY, fueling a divergence in spending trends.

Commodities added further color to the session. Gold futures for December delivery slipped 0.31% to $3,670.70, while crude oil futures dropped nearly 2% to $62.43, extending recent weakness in energy markets.

Taken together, Thursday’s early trade reflects investor optimism that inflation remains contained enough for central banks to avoid tightening further, even as slowing job growth and uneven wage dynamics highlight the fragility of the recovery.