US stocks continue to gain on easing inflation fears

Major US equity indices opened with modest gains on Thursday as easing inflation fears boosted investors' appetite for equities.

According to the latest data, US consumer prices rebounded less than expected in April, with the headline CPI rising 0.2% and the core inflation, which excluded food and energy, ticking higher by 0.1%. Softer inflation figures dampened expectations about steeper Fed monetary policy tightening cycle and provided a minor lift to riskier assets - like equities.

Adding to this, the number of people who applied for unemployment related benefits held steady near multi-decade lows and remained supportive of the early bullish sentiment. 

Meanwhile, the ongoing rally in oil prices, with WTI crude oil touching its highest level since November 2014, continue to underpin energy stock and was also seen as one of the factors behind the recent optimism in markets.

With today’s up-move of around 80-points, the blue-chip Dow Jones Industrial Average remains on track for the sixth straight session on gains and post the longest winning streak since February. Meanwhile, the broader S&P 500 Index added over 10-points and tech-heavy Nasdaq Composite climbed nearly 25-points to 7,364.