Stocks saw incremental gains as investors absorbed a key inflation metric that aligned with economist expectations.

The Dow Jones Industrial Average rose by 38 points, equivalent to a 0.1% increase, while the S&P 500 recorded a 0.5% climb. The Nasdaq Composite showed a more significant advance of 0.9%.

Data revealed that the Federal Reserve’s favored measure of inflation in January remained persistently above the central bank’s target, though it did not surpass Wall Street forecasts.

Additionally, there were indications that consumer spending remained strong, CNBC reported.

The core personal consumption expenditures price index, recognized as the Federal Reserve’s preferred inflation gauge, showed a 0.4% increase for the month and a 2.8% rise from the previous year, aligning with Dow Jones estimates.

The headline PCE, encompassing food and energy categories, reported a 0.3% monthly increase and a 2.4% surge on a 12-month basis, in line with respective estimates for 0.3% and 2.4%.

Written by B.C. Begley