Wall Street Gains on Stable Inflation Data: Fed's Interest Rate Cut Likely

Wall Street indexes rose after consumer price inflation data aligned with expectations, keeping hopes of a Federal Reserve interest rate cut in December alive. The consumer price index increased by 0.2% in October, leading to a positive market reaction. Tesla's shares surged while Meta Platforms faced scrutiny.

Wall Street's primary indexes saw a slight uptick on Wednesday, following consumer price inflation data that matched predictions. This development keeps the U.S. Federal Reserve on course for a potential interest rate reduction in December.

October's consumer price index reflected a 0.2% rise, sustaining this trend for four months in a row, while annual growth reached 2.6%, according to the Labor Department's Bureau of Labor Statistics. Excluding food and energy, the CPI exhibited a 0.3% increase. These figures reversed early stock market losses.

Expectations for a Federal Reserve 25-basis point interest rate cut rose to 82%. The Dow Jones gained 98.25 points, the S&P 500 climbed by 8.33 points, and the Nasdaq Composite increased by 17.34 points. While Tesla's shares rose by 4%, Facebook's parent company Meta faced an antitrust trial.

(With inputs from agencies.)