Stocks rise as inflation report keeps rate hikes on track

Stocks eased off of early gains, but still edged higher in afternoon trading on Wall Street Wednesday after the latest report of surging prices appeared to keep the Federal Reserve on track to raise interest rates later this year.

The S&P 500 rose 0.3%, the Dow Jones Industrial Average rose less than 0.1% and the Nasdaq rose 0.4%.

Bond yields were relatively stable.

Inflation jumped 7% last month, its fastest year-over-year pace in nearly four decades, but in line with economists’ forecasts.

Fed Chair Jerome Powell told Congress Tuesday the Fed stands ready to raise rates to fight inflation.