US stocks up as Fed meeting looms, inflation weak

New York - Wall Street stocks rose in opening trade on Wednesday as the markets digested a weak reading on consumer prices ahead of a key Federal Reserve interest rate decision.

Five minutes into trade, the Dow Jones Industrial Average stood at 16 639.80, up 39.95 points.

The broad-based S&P 500 advanced 0.25% to 1 983.13, while the tech-rich Nasdaq Composite Index added 0.20% at 4 870.33.

The Labour Department said its consumer price index fell 0.1% in August, dragged lower by tumbling gasoline prices.

The fresh data signalled a continued lack of inflationary pressure that would support the Fed undertaking its first rate hike in more than nine years.

Traders see a 30% chance the Fed will raise interest rates Thursday, up from 25% on Tuesday morning, said a note from Wells Fargo Advisors.