DJIA up 106.60 points (Il Sole 24 Ore Radiocor) - New York, 11 Jul - US shares were trading mixed after key data showed inflation had fallen more than expected in June, rekindling hopes of an interest rate cut this year.

The consumer-price index fell for the first time since 2020 last month, sliding 0.1% from the previous month and coming in below expectations for a 0.1% growth. On the year prices grew 3.0% compared to forecasts for 3.1%.

Core prices, which exclude volatile food and energy items, climbed 3.3% on the year, below estimates of 3.4%.

The Federal Reserve has acknowledged progress in bringing down inflation towards its 2% target rate but has cautioned it wants to see more evidence the easing is sustainable before it starts to cut rates.

In his two days of Congress testimony earlier this week Fed chair Jerome Powell reiterated the mantra while adding a softening jobs market signalled less pricing-pressure to worry over.

According to the CME FedWatch Tool, the market is now pricing in a 91% chance the Fed cuts rates in September compared to a 75% chance just a day ago.

The dollar weakened against major currencies.

At 1615 GMT, the Dow Jones was up 106.60 points, or 0.27%, at 39,827.96 points.

The S&P 500 was 29.05 points, or 0.52%, lower at 5,604.86 points.

The Nasdaq was losing 225.71 points, or 1.21%, at 18,421.74 points.

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(RADIOCOR) 11-07-24 17:19:06 (0515) 5 NNNN