U.S. stocks rose on Wednesday as they tried to find their footing after better-than-expected inflation data sparked a selloff and dashed hopes for a pre-summer interest rate cut.
The Dow Jones Industrial Average (^DJI) rose 0.4%, rebounding from a 500-point decline and the blue-chip benchmark's worst day since March 2022. The S&P 500 (^GSPC) rose about 0.6%, and the Nasdaq Composite Index rose about 0.6%. More than 0.7% – This also follows a sharp decline.
Calm is returning after surprise consumer inflation reports took the market by surprise. Investors are starting to realize that the Federal Reserve may continue to cut interest rates into the second half of the year, and that the U.S. economy may be in a tailspin.
read more: Impact of Fed interest rate decisions on bank accounts, CDs, loans, and credit cards
Shares of Microsoft (MSFT) were slowly recovering in morning trading after the interest rate-sensitive tech giant plunged. Meanwhile, the 10-year US Treasury yield (^TNX) retreated slightly from the previous day's gains to trade around 4.28%.
Comments from Fed officials Austan Goolsby and Michael Barr later in the day could provide further substance to the ever-present debate over the timing of interest rates.
Cisco (CSCO), Kraft Heinz (KHC), and Warren Buffett-linked Occidental (OXY) are among the big names on the list, and a wave of new earnings reports is also showing some momentum. may result in
Investors were hit hard by a typo in Lyft's (LYFT) financial update late Tuesday. The ride-hailing company's stock initially soared 67%, but the gains stalled after Lyft corrected an error in a statement boosting its profit outlook. The stock rose even more modestly by 30% in morning trading.
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