US stocks rise after producer inflation cools

US stocks rose early Thursday after producer inflation slowed in July, easing some market concern that the Federal Reserve could raise interest rates to counter inflation.

The Producer Price Index was unchanged from June and rose 4.7% from a year earlier, down from a 5.5% annual increase in June, the Department of Labor said. Treasury bond yields moved lower after the report.

About 15 minutes into trading, the Dow Jones Industrial Average was up 0.3% at 53,914.32. The S&P 500 gained 0.5% to 7,784.03, while the Nasdaq Composite Index advanced 0.5% to 26,720.68.

The producer-price data came a day after US consumer inflation also slowed in July. Analysts still warned that inflation risks remained, including from energy prices linked to fighting in the Middle East.

“Inflation risks have not disappeared,” Fiona Cincotta said in a note for Forex.com. She said geopolitical tensions and risks around the Strait of Hormuz remained important for energy prices and the inflation outlook.

Among individual companies, Cisco fell about 9% despite reporting better-than-expected results linked to growth connected to artificial intelligence. UBS said the drop likely reflected concerns about a possible slowdown in profit margins, but called any pullback “an attractive buying opportunity.”