ZUMZ - US Stocks Rise Despite Hot Inflation As Fed Sentiment Remains Unshaken: What's Driving Markets Wednesday? | Benzinga
Wall Street edged higher during Wednesday’s midday session, despite the August CPI report showing the annual inflation rate rising to 3.7%, above the predicted 3.6%.
The unexpected uptick, also coupled with a monthly core inflation exceeding expectations (0.3% vs. 0.2%), did not lead to significant disruptions in the interest rate landscape.
The increase, primarily driven by a rise in energy prices, was perceived by the market as something the Fed is likely to look through. Consequently, expectations have remained unchanged, with traders now almost certainly pricing in a hold on rates at the FOMC meeting next week, while uncertainties linger regarding the November decision.
On a weaker note, Apple Inc. (NASDAQ:AAPL) continued to trade in the red. Investors are exercising caution amidst concerns of a potential iPhone ban in China, compounded by a lackluster reception for Apple’s Tuesday iPhone launch event.
Cues From Wednesday’s Trading
All major U.S. stock indices traded in the green, excluding small caps in the Russell 2000 index.
The tech-heavy Nasdaq 100 outperformed, up 0.6%, while the S&P 500 edged 0.3% higher and the Dow gained 0.2%.
US Index Performance On Wednesday
Index Performance (+/-) Value
Nasdaq 100 +0.64% 15,386.77
S&P 500 Index +0.33% 4,477.31
Dow Industrials +0.18% 34,713.49
Russell 2000 -0.40% 1,847.99
Wednesday’s Trading In Major US Equity ETFs
- The SPDR S&P 500 ETF Trust (NYSE:SPY) ...