US stocks rise as markets brace for fresh inflation data

• US stocks ticked higher on Wednesday as traders waited for December's inflation data. 
• All three benchmark indexes slipped in early-morning trading but ended the day higher. 
• December's CPI reading will inform the outlook for Fed policy as investors assess the odds of rate cuts. 

US stocks rose on Wednesday as investors waited for the release of tomorrow's inflation report.

All three benchmark indexes moved higher, reversing declines from earlier in the day. Bond yields were relatively flat, with the 10-year US Treasury trading around 4.03%.

Consumer prices are expected to have accelerated to 3.2% in December, according to economists polled by Dow Jones. That would be a slightly hotter pace of inflation from the prior month when prices grew 3.1% year-per-year.

Still, investors have ramped up their expectations for the Fed to soon pivot to cutting interest rates, which which Wall Street pros say will be bullish for stocks this year. 

Markets are now pricing in a 64% chance rates the Fed could begin slashing interest rates in March, according to the CME FedWatch tool.

Crypto investors are awaiting a decision from the Securities and Exchange Commission on whether spot bitcoin ETFs can begin trading in the US. The regulator's X account was hacked late on Tuesday, posting a false tweet that it had approved applications for the funds.

Bitcoin was hovering at about $45,729 at the end of the day on Wednesday, down by 2%. 

Here's where US indexes stood at the 4:00 p.m. closing bell on Wednesday: 

• S&P 500: 4,783.45, up 0.57% 

• Dow Jones Industrial Average: 37,695.73, up 0.45% (+170.57 points)

• Nasdaq Composite: 14,969.65, up 0.75% 

Here's what else happened today:

• CHART OF THE DAY: Nvidia's stock just notched a new record high.
• Bitcoin could soar to half a million over the next five years as demand booms from a bitcoin spot ETF, according to Fundstrat's Tom Lee.
• A finance blogger's "boring" ETF just outperformed Warren Buffett's Berkshire Hathaway.
• Low rates corrupt investing, according to billionaire investor Howard Marks.
• The wealthiest 10% of Americans own the majority of the stock market.
• The price of ether jumped as the expected approval of a spot bitcoin ETF ignites hope for other crypto funds.
• Investors in China are so sick of losses they're pouring money into Japan.

In commodities, bonds, and crypto: 

• West Texas Intermediate crude oil dropped 1.3% to $71.30 a barrel. Brent crude, the international benchmark, dipped 1% to $76.76 a barrel. 
• Gold slipped 0.2% to $2,028 per ounce. 
• The 10-year Treasury yield was flat at around 4.03%.
• Bitcoin dropped 2.53% to $45,606.