Stock market today: Wall Street churns after highly anticipated inflation data
Stocks are churning in place on Wall Street after a highly anticipated report showed inflation accelerated across the country last month, but not by much more than expected
NEW YORK — Stocks are churning in place on Wall Street Wednesday after a highly anticipated report showed inflation accelerated across the country last month, but not by much more than expected.
The S&P 500 was up 0.3% in midday trading after drifting between small gains and losses earlier. The Dow Jones Industrial Average was 68 points higher, or 0.2%, at 34,714, as of 11:50 a.m. Eastern time, and the Nasdaq composite was up 0.4%.
The moves follow a shaky immediate reaction across financial markets to the inflation report, where bond yields and stock prices swung back and forth several times. The report said U.S. consumers paid prices last month that were 3.7% higher than a year earlier, up from July’s inflation rate of 3.2%.
That’s discouraging for shoppers paying higher prices, but much of the acceleration was because of higher fuel costs, which can swing very sharply and quickly. Ignoring those, underlying inflation trends still look to be pointing toward continued moderation, economists said. Inflation peaked last year above 9%.
The inflation report was so highly anticipated because it will help steer what the Federal Reserve does next on interest rates. The Fed has already hiked its main rate to the highest level in more than two decades, which hurts prices for stocks and other investments, and the hope on Wall Street is that inflation has cooled enough for it to be done.
Wednesday’s data likely keeps the Fed on track to keep rates steady at its meeting next week, said Gargi Chaudhuri, head of iShares Investment Strategy, Americas. It could also
Read more on abcnews.go.com
