Major U.S. stock indexes returned early losses on Thursday, as the Dow and S&P 500 rebounded from two-year lows as investors digested a larger-than-expected rise in U.S. consumer prices. United States last month that sparked fears of another big rate hike by the Federal Reserve at its November meeting.
The US consumer price index rose 8.2% in September from a year earlier, compared with an expected 8.1% advance. The reading was lower than the 8.3% annual jump recorded in August.
Core inflation, which eliminates volatile food and fuel prices, rose 6.6% last month from the year-ago period, versus a rate estimate of 6.5%.
The reading was well above August’s 6.3% high.
“Both the headline and core numbers were way above expectations, and that’s disappointing,” said Mace M. McCain, chief investment officer at Frost Investment Advisors.
“We expected to see some moderation in inflation and we are not seeing that at this point. There is nothing to deter the Fed from its path.”
The inflation report follows Wednesday’s data that showed a larger-than-expected rise in U.S. producer prices in September, leading U.S. rate futures traders to price in a near 91% likelihood of a fourth straight rise from 0. .75 percentage points off the Fed’s prime rate at its meeting next month, with a 9% chance of an even higher adjustment of 1 full point.
At 12:26 (GMT) the Dow was up 1.11% to 29,534.79 points, while the Nasdaq Composite technology index was down 0.64% to 10,350.06 points. At 12:20 pm, the S&P 500 index was up 1.05%.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
