U.S. stocks were rising ahead of this week's inflation data, Fed decision

Investing.com -- U.S. stocks were rising ahead of fresh inflation data and the Federal Reserve’s latest decision on interest rates this week.

At 10:34 ET (14:34 GMT), the Dow Jones Industrial Average was up 35 points or 0.1%, while the S&P 500 was up 0.2% and the NASDAQ Composite was up 0.5%.

The Fed starts its two-day meeting on Tuesday when the Labor Department is set to release the consumer price index reading for May. That report could influence the Fed’s decision, which at the moment is widely considered to be a pause from more rate increases.

Futures traders put the probability of a pause around 73%, though that still may not be the end of interest rate increases. Traders see more than 50% probability the Fed will raise rates in July after the pause.

Meanwhile, the prospect of a slowdown in interest rate increases has lifted stocks. The S&P 500 is out of bear market territory after rising 20% above its October low. Goldman Sachs last week raised its year-end price target for the broad index to 4,500 from 4,000. It’s around 4300 on Monday.

Shares of Biogen Inc. (NASDAQ:BIIB) rose 2.1% after a panel of advisers to the Food and Drug Administration unanimously backed its Alzheimer's drug in a meeting last week.

Adobe Systems Incorporated (NASDAQ:ADBE) shares rose 2.6% after a price target raise from Jefferies, while Oracle Corporation (NYSE:ORCL) shares rose 4.9% after a price target increase by JPMorgan.