US Open: Wall Street bulls take the stage!

• Wall Street opens higher as PCE data reveals lowest inflation in over 2 years

• S&P 500 is up 1.0%, and Nasdaq Composite gains 1.1%

• Headline PCE shows a modest 0.1% increase in May, while year-over-year price increase slows to 3.8%

U.S. stock indexes opened on a positive note as the latest PCE data indicated a decrease in inflation, easing concerns about potential interest rate hikes. The Dow Jones Industrial Average climbed 0.5%, the S&P 500 rose 0.8%, and the Nasdaq Composite saw a gain of 1.1%.

The PCE deflator, the Federal Reserve's favored inflation gauge, slowed to 3.8% in May, accompanied by stagnant consumer spending, indicating a potential loss of momentum in the economy. The core PCE reading also softened to 4.6%, while services inflation, excluding housing and energy services, experienced a welcome deceleration. These figures led to increased futures gains and the reversal of losses in benchmark Treasuries, as market speculation suggested reduced pressure on the Fed for multiple interest rate hikes by the end of 2023.

On the other hand, in the euro-area, core inflation accelerated in June, posing a setback for the European Central Bank (ECB) and potentially strengthening its determination to raise interest rates next month. The measure of underlying consumer-price gains rose to 5.4%, while headline inflation reached 5.5%, both slightly higher compared to the previous month.

US500 index, currently trading at 4490 points, has shown a significant 1.2% increase on june 30. It recently experienced a bounce from the support level at 4400, indicating a potential shift in momentum. As the index approaches the 4500 level, it is important to monitor its ability to break through this resistance. A successful break of 4500 could potentially pave the way for further gains towards the next level at 4550.