DJIA up 76.54 points (Il Sole 24 Ore Radiocor) - New York, 26 Apr - US shares were trading higher at midday underpinned by big tech gains after the Federal Reserve's preferred inflation index came in higher than expected.

The core Personal Consumption Expenditures (PCE) index, closely monitored by the Federal Reserve, rose 2.8% on the year which was more than the 2.6% growth expected and in line with the previous month's rate.

The reading comes at a time when traders are scaling back expectations over the timing and number of Fed rate cuts.

The CME Group's FedWatch Tool is currently pricing in a chance of 61.4% for a Fed rate cut at its September meeting.

Strong earnings meanwhile from tech juggernauts Microsoft and Google-parent Alphabet helped reassure investors on artificial intelligence after Meta Platforms triggered panic with its warning over the extra investments needed to roll out AI infrastructure.

Among individual stocks, shares in Microsoft were up more than 2.5% while Alphabet, which also announced its first cash dividend, was up 9.4%.

Shares in Intel slumped 9.3% after disappointing results and outlook while Snap jumped almost 25.6% after breezing past estimates and its own guidance on revenues. Exxon Mobil, which missed estimates on its quarterly earnings, was down 4%.

At 1621 GMT, the Dow Jones was up 76.54 points, or 0.20%, at 38,162.34 points.

The S&P 500 was 47.92 points, or 0.95%, higher at 5,096.34 points.

The Nasdaq was gaining 301.92 points, or 1.94%, at 15,915.67 points.

AAA-Zap

(RADIOCOR) 26-04-24 17:23:07 (0502) 5 NNNN