By Purvi Agarwal,Shashwat Chauhan

Copyright reuters

SummaryCompaniesAugust CPI at 0.4% MoM versus 0.3% estimatedMicron jumps after Citigroup hikes PTIndexes up: Dow 0.39%, S&P 500 0.29%, Nasdaq 0.26%

Sept 11 (Reuters) – Wall Street’s main indexes rose on Thursday after the latest inflation data did little to alter market expectations of interest rate cuts, with healthcare and technology stocks leading gains.

U.S. consumer prices rose more than expected in August and the annual increase in inflation was the largest in seven months. The data, however, did not shake up already priced-in rate cut expectations.

The Fed is widely expected to cut rates by at least 25 basis points next week and pricing now reflects bets on three straight quarter-point cuts, one at each meeting left this year.

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“Inflation is firming, not as much as we expected, but firming nonetheless … in a way, that the market can digest it,” said Gary Schlossberg, global strategist at Wells Fargo Investment Institute.

“We’re not looking for a jumbo cut as some had expected …(the data) may temper the market’s enthusiasm for big cuts, but it (does not) really change the trajectory at the margin.”

In a separate reading, initial jobless claims for the week ended September 6 stood at 263,000, beating estimates.

The data follows a producer inflation reading, which fell unexpectedly, and a series of economic indicators that point to continued labor market weakness.

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At 09:39 a.m. ET, the Dow Jones Industrial Average (.DJI), opens new tab rose 176.87 points, or 0.39%, to 45,667.79, the S&P 500 (.SPX), opens new tab gained 18.79 points, or 0.29%, to 6,550.83 and the Nasdaq Composite (.IXIC), opens new tab gained 56.10 points, or 0.26%, to 21,942.16.

Eight of the 11 S&P 500 sub-sectors were on the rise, with health care (.SPXHC), opens new tab advancing the most, up 0.8%.

Health insurer Centene (CNC.N), opens new tab advanced 10% after the company said its financial results through August are consistent with its full year guidance.

Micron Technology (MU.O), opens new tab gained 10.3% after Citigroup raised its price target on the memory chipmaker to $175 from $150. The Philadelphia SE Semiconductor Index (.SOX), opens new tab rose 1%, up for the sixth straight session.

Communication services (.SPLRCL), opens new tab lagged, down 0.4%.

The S&P 500 and the Nasdaq notched record high closes on Wednesday, partly helped by a nearly 36% surge in Oracle (ORCL.N), opens new tab after an upbeat forecast that brought the cloud computing company closer to joining the trillion-dollar club.

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It revived the AI trade on Wednesday, sparking a rally in artificial-intelligence-linked chip and utility companies supplying power to data centers.

Oracle, however, dropped 2.6% in early trading.

Wall Street’s three main indexes have had a broadly positive start to September – a month that is deemed bad historically for U.S. equities. In the month, the benchmark S&P 500 has shed 1.5% on average since 2000, data compiled by LSEG showed.

Advancing issues outnumbered decliners by a 2.61-to-1 ratio on the NYSE and by a 2.13-to-1 ratio on the Nasdaq.

The S&P 500 posted 13 new 52-week highs and three new lows, while the Nasdaq Composite recorded 46 new highs and 19 new lows.

Reporting by Purvi Agarwal and Shashwat Chauhan in Bengaluru; Editing by Pooja Desai and Maju Samuel

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