US stocks trade mixed as investors assess Fed outlook after August CPI comes in hotter than expected
Getty Images / Spencer Platt
- US stocks were mixed on Wednesday as traders weighted the hot August inflation report.
- Consumer prices increased 3.7% year-per-year last month, above the expected 3.6%.
- Markets now see a 41% chance that the Fed could hike rates 25 basis points in November.
US stocks traded mixed on Wednesday as traders weighed the August inflation report that came in hotter than economists expected.
Prices rose 3.7% year over year last month, slightly ahead of the estimated 3.6% clip. Meanwhile, core inflation rose 4.3%, in-line in expectations.
"On the whole, the upward moves were uncomfortably broad-based and are a nagging reminder to the Fed that inflation could resurface in the future even when it seems to be temporarily under control," BMO Wealth Management chief investment officer Yung-Yu Ma said. "The report reinforces our 'higher for longer' expectation, and it would probably only take a few other unfavorable data points by year end to have the Fed thinking seriously of hiking rates again."
Markets are pricing in a 97% chance central bankers will keep rates level in September. But by November, they see a 41% chance rates could rise 25 basis points.
Markets are still waiting on key economic indicators before the Fed issues its next rate move on September 20. The Bureau of Labor Statistics is slated to release the August Producer Price Index before the opening bell on Thursday.
Here's where US indexes stood shortly at the 4:00 p.m. closing bell on Wednesday:
- S&P 500: 4,467.44, up 0.12%
- Dow Jones Industrial Average: 34,575.53, down 0.20% (70.46 points)
- Nasdaq Composite: 13,813.58, up 0.29%
Here's what else is going on today:
- Tesla is the most shorted stock in the market, according to a new report.
- Here's what Wall Street analysts are saying about Apple's iPhone 15 event.
- Chinese growth expectations have fallen to "lockdown lows," according to a new Bank of America survey.
- Investors just dumped $12 billion in Chinese stocks as confidence in the nation's economy wavers.
- Rents in the US are close to notching a new all-time high.
In commodities, bonds, and crypto:
- Oil prices slipped. West Texas Intermediate crude oil fell 0.28% to $88.59 a barrel. Brent, the international benchmark, fell 0.12% to $91.95 a barrel.
- Gold dipped 0.25% to $1,908.81 per ounce.
- The yield on the 10-year Treasury bond slipped one basis point to 4.249%.
- Bitcoin inched lower 0.2% to $26,134.