By Liz Moyer
Investing.com — U.S. stocks opened mixed and tried to stage a rally after inflation data eased in April but remained near 40-year highs.
At 10:31 AM ET, the Dow Jones Industrial Average rose 235 points, or 0.7%, while the S&P 500 also rose 0.7% and the NASDAQ Composite was up 0.2%.
The Consumer Price Index rose 8.3% in April from last year, slowing from its pace in March but still higher than estimates. Prices rose 0.3% from March to April, the slowest increase since last August but still above the 0.2% analysts expected.
The reading sparked new speculation about how the Federal Reserve will act when it meets next month to decide on another interest rate increase. It has been expected to raise rates another half point, as it did at its recent meeting. But elevated inflation might encourage an even bigger 75 basis point hike.
Shares of the cryptocurrency operator Coinbase Global Inc (NASDAQ:COIN) fell 24% after saying on Tuesday that first-quarter revenue missed estimates because of a slump in digital asset prices and market volatility.
Shares of Carvana Co (NYSE:CVNA), the online used car marketplace, fell 6% in early trading after saying on Tuesday that it would cut 12% of its workforce after acknowledging that its fast growth had gotten ahead of itself.
The price of oil continued to climb. Crude Oil WTI Futures, the U.S. benchmark, rose 5.3% to $105.20 a barrel, while Brent Oil Futures crude rose 4.6% to $107.12 a barrel. The price of Gold Futures rose 0.5% to $1850 an ounce.