US stocks rise after inflation stays at 3.4%

US stocks rose early Wednesday after the Federal Reserve's preferred inflation gauge stayed at 3.4 percent year-on-year in August and private hiring data came in above market expectations.

About 20 minutes into trading, the Dow Jones Industrial Average was up 0.1 percent at 51,386.46. The S&P 500 rose 0.4 percent to 7,699.89, while the Nasdaq Composite Index advanced 0.6 percent to 26,958.66.

Government data showed the inflation reading was unchanged from the previous month after a revision to July's figure. The report showed lower price increases than expected, though inflation remained well above the Federal Reserve's target level.

Private sector job growth rose to 90,000 last month from 38,000 the month before, according to payroll firm ADP. The US Commerce Department also revised its estimate of second-quarter gross domestic product growth up by 0.7 percentage points to 2.2 percent.

“Any good news on inflation right now is understandably interpreted as good news,” said Steve Sosnick of Interactive Brokers.