Steady Inflation Keeps Fed on Track for December Rate Cut

The S&P 500 and Dow marginally rose on Wednesday following consumer price inflation data that aligns with another expected Federal Reserve interest rate cut in December. Inflation remained steady, encouraging investor optimism about potential economic policies under President-elect Donald Trump. Financial stocks led gains, while other sectors experienced varied performances.


Devdiscourse News Desk | Updated: 13-11-2024 22:58 IST | Created: 13-11-2024 22:58 IST
Steady Inflation Keeps Fed on Track for December Rate Cut
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The S&P 500 and Dow Jones inched higher on Wednesday, bolstered by consumer price inflation data that supports the U.S. Federal Reserve's anticipated interest rate cut in December. The consumer price index increase matched economists' predictions, maintaining steady inflation and keeping market narratives on a stable path.

Expectations for a 25-basis point rate cut surged to over 82%, with Minneapolis Fed President Neel Kashkari expressing confidence in a downward inflation trend. The Dow gained 193.95 points, while the S&P 500 rose 13.05 points, even as the Nasdaq saw minimal movement.

Investors remained optimistic, anticipating President-elect Trump's pro-business policies and potential tax cuts to bolster corporate growth. Meanwhile, financial stocks led by Goldman Sachs and JPMorgan Chase buoyed the Dow, despite mixed performances across other sectors.

(With inputs from agencies.)

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