Advertisment
Stocks seesawed Wednesday, trading in wide ranges, as traders weighed what the latest U.S. inflation data means for Federal Reserve policy. Tech shares led a rebound from steep session lows.
The Dow Jones Industrial index reversed earlier losses and finished in plus territory 124.13 points at 40,861.19.
The S&P 500 regained 58.59 points, or 1.1%, to 5,554.11.
The NASDAQ hiked 369.65 points, or 2.2%, to 17,395.53.
Investors picked up shares of mega-cap tech and semiconductor names in afternoon trading, boosting the NASDAQ as Nvidia gained roughly 7.5% and AMD added more than 4.1%.
Bank stocks, including JPMorgan Chase and Goldman Sachs, also rebounded from earlier lows and traded marginally higher.
The consumer price index report released Wednesday reflected a 0.2% increase in prices last month, with the annual inflation rate coming in at 2.5% — its lowest level since February 2021. The CPI was expected to increase 0.2% in the previous month and 2.6% from a year ago, according to the Dow Jones consensus estimate.
Month over month core CPI — which does not include volatile food and energy prices — came out slightly hotter-than-expected, however.
Investors are still betting on a widely anticipated interest rate cut at the Federal Reserve’s Sept. 17-18 meeting. Traders priced in an 85% chance that the Federal Open Market Committee will approve a 25-basis-point interest rate reduction.
The new data comes as investors grapple with seasonal headwinds. September has been the worst month for the S&P 500 over the last 10 years, averaging a loss of more than 1% during that time. The broad-market index has also posted a loss in September in the last four years.
Prices for the 10-year Treasury sagged, bringing yields up to 3.66% from Tuesday’s 3.65%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.35 to $67.10 U.S. a barrel.
Gold prices slipped $3.10 to $2,540.
