Wall St set to open sharply higher after softer-than-expected CPI data


BENGALURU: Wall Street was set to open sharply higher on Wednesday after data showed a slower-than-expected rise in inflation last month, reducing bets on super-sized rate hike in September.

U.S. annual consumer prices slowed to 8.5% in July. Economists polled by Reuters expected the Consumer Price Index to show year-on-year headline inflation of 8.7%, far above the Federal Reserve's target of 2%, but lower than last month's 9.1%.

Core inflation remained unchanged month-on-month at 5.9%, while economists were expecting a rise to 6.1%.

The market is now pricing in 33.5% chance of a 75 basis point increase in fund rates at the Fed's next meeting in September, compared with 67.5% before the data.

At 8:41 a.m. ET, Dow e-minis were up 424 points, or 1.3%, S&P 500 e-minis were up 71.5 points, or 1.73%, and Nasdaq 100 e-minis were up 307.25 points, or 2.36%.

After a rough start to the year, the benchmark S&P 500 is up nearly 13% from its mid-June low, largely on expectations the Fed will be less hawkish than anticipated in its efforts to provide a soft landing for the economy. - Reuters

Article type: free
User access status:
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!

   

Next In Business News

Tax cuts will boost economy, provide multiplier impact: Tengku Zafrul
Budget 2023: Govt to enhance green tech financing scheme
OGSE players to benefit from RM1bil maritime and logistics fund
MNOs execute share subscription agreements with DNB
Govt extends tax breaks on listing expenses to tech companies on Bursa Malaysia
ASB, ASB 2 investment limit increased to RM300,000
Govt allocates RM92mil towards developing halal industry
EPF's investment income falls 21% to RM27bil in 1H22
Budget 2023: Reactions from the financial sector
SemarakNiaga initiative receives RM45bil to spur business activity

Others Also Read