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feeding: Wall Street stagnates to close higher as Fed rate hike looms

Wall Street ended a non-directional session higher on Wednesday as the on-target inflation report largely curbed Tuesday’s sell-off and investors pressed the “pause” button.

All three indices fluctuated throughout the day, but ended up in the positive zone. They were all unable to meaningfully recover ground lost in Tuesday’s carnage, giving their percentages the biggest drop in more than two years.

Ryan said: “Today is the day to lick your wounds, after being beaten to the body yesterday” Detrick, director of market strategy at Carson Group in Omaha, Nebraska. “It’s been a day of rest and that’s a welcome sign.”

The Labor Department’s producer price (PPI) data landed close to consensus estimates and helped alleviate some of the fallout from Tuesday’s market-turbulent CPI, which was hotter than expected.

“The inflation debate continues and yesterday was a stark reminder that this is an uphill battle and raised Detrick added.

The PPI report offers reassurance that inflation is indeed on a downward and slowing trajectory.

But it still has a long way to go before approaching Federal ReserveThe average annual inflation target is 2%, and while financial markets have fully priced in a rate hike of at least 75 basis points by the end of next week’s FOMC policy meeting, the possibility The probability of a mega-case is 22%, up 100 basis points, according to CME’s FedWatch tool.

The two-year US Treasury yield, which reflects interest rate expectations, extended Tuesday’s gains.

The size and timing of further rate hikes in the future has many market observers concerned about the lagging impact of the Fed’s tightening phase, with some seeing a recession as inevitable.

The transportation sector, seen as a barometer of economic health and providing a supply-side view of the inflation picture, has been weighed down by rail stocks in the face of a potential strike. power.

“Have The White House Detrick asked.

Rail operators Union Pacific, Norfolk Southern and CSX Corp lost 3.7%, 2.2% and 1.0%, respectively, even as Labor Secretary Marty Walsh met union representatives in Washington during the meetings. negotiations aimed at preventing railway closures.

The Dow Jones Industrial Average rose 30.12 points, or 0.1%, to 31,135.09, the S&P 500 gained 13.32 points, or 0.34%, to 3,946.01 and Nasdaq The Composite added 86.10 points, or 0.74%, to 11,719.68.

Six of the 11 major S&P 500 sectors gained, with energy stocks leading the way, supported by rising crude oil prices on supply concerns.

Shares of Starbucks Corp rose 5.5% after the company raised its three-year sales and profit outlook.

Tesla Inc rebounded from Tuesday’s decline, up 3.6% on the same day President Joe Biden announced $900 million in funding for electric vehicle charging stations.

There were more bullish issues than bearish issues on the NYSE by a ratio of 1.05 to 1; on Nasdaq, the ratio 1.06-1 favors the bears.

S&P 500 posts 2 52-week highs and 30 new lows; Nasdaq Composite recorded 26 new highs and 219 new lows.

Volume on US exchanges was 10.90 billion shares, compared with an average of 10.33 billion over the last 20 trading days.

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