DJIA up 108.95 points (Il Sole 24 Ore Radiocor) - New York, 28 Jun - US shares were trading slightly higher at midday after a key inflation gauge closely watched by the Federal Reserve showed pricing pressure was easing but was in line with expectations.

The personal-consumption expenditures price index for May came in at the slowest annual rate of growth in more than three years. Core PCE, the Fed's preferred measure of inflation, grew 2.6% from the same month last year and was up 0.1% on the month compared to April's 0.3% rate. Both readings met economists' estimates.

Stubborn inflation has prompted the Fed to put back moves to cut interest rates until later this year at the earliest.

This week Fed Governor Michelle Bowman said that rates would have to be kept steady "for some time".

In comments today Richmond Federal Reserve Bank president Thomas Barkin said he believed high interest rates would eventually slow the economy and inflation down but cautioned it was too soon to tell. 'There's one way to find out: Proceed deliberately while keeping a close eye on the real economy. And that's what I am doing." Also on the data front, US consumer sentiment fell to 68.2 in June from 69.1 in May, but topped expectations for a decline to 65.6.

Investors are also chewing over last night's first presidential debate between Joe Biden and former president Donald Trump, widely perceived to have gone against the incumbent. The market has so far been cautious over taking election-related bets but Biden's faltering showing yesterday could prick some into action.

Shares of Trump Media & Technology Group were up 4% in early trading.

Elsewhere, shares in Nike were down 18% after the sports footwear company reported a surprise drop in quarterly sales and cut its revenue outlook. Walgreens Boots Alliance was up 1.4% after its 22% loss yesterday following disappointing results.

At 1617 GMT, the Dow Jones was up 108.95 points, or 0.28%, at 39,273.01 points.

The S&P 500 was 14.58 points, or 0.27%, higher at 5,497.45 points.

The Nasdaq was gaining 41.81 points, or 0.23%, at 17,895.41 points.

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(RADIOCOR) 28-06-24 17:25:38 (0508) 5 NNNN