Stock market today: Wall Street rises after first of this week's tests as wholesale inflation slows
U.S. stocks are rising, and Wall Street is relaxing a bit after the first of several highly anticipated reports on the economy this week came in better than expected
NEW YORK — U.S. stocks are rising Tuesday, and Wall Street is relaxing a bit after the first of several highly anticipated reports on the economy this week came in better than expected.
The S&P 500 was 1% higher in morning trading after the U.S. government reported inflation at the wholesale level slowed last month by more than economists expected. The Dow Jones Industrial Average was up 165 points, or 0.4%, as of 11 a.m. Eastern time, and the Nasdaq composite was 1.6% higher.
High inflation has been the scourge of shoppers and financial markets for years. It finally looks to be slowing enough to get the Federal Reserve to ease up on high interest rates, which the Fed has been keeping at economy-crunching levels in order to stifle inflation.
Treasury yields eased in the bond market following the inflation data, as traders remain convinced the Fed’s meeting next month will bring the first cut to interest rates since the COVID crash of 2020.
The yield on the 10-year Treasury fell to 3.86% from 3.91% late Monday.
All is still not clear, though. On Wednesday, the U.S. government will deliver the latest monthly update on inflation that U.S. consumers are feeling, which could be less encouraging. And on Thursday will come a report showing how much U.S. shoppers are spending at retailers.
A growing worry on Wall Street is that the Fed may have kept interest rates too high for too long and undercut the U.S. economy by making it so expensive to borrow money. The economy is still growing, and many economists don’t expect a recession, but a sharp slowdown in U.S.
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