Stocks rose on Wednesday as inflation continued to slow in the United States, weakening the case for further interest rate hikes from the Federal Reserve.
The S&P 500 (^GSPC) ended up 0.75%, while the Dow Jones Industrial Average (^DJI) gained about 0.25%. The tech-heavy Nasdaq (^IXIC) led the way, rising more than 1%.
The Consumer Price Index (CPI) report slowed to its lowest rate since March 2021, bolstering hopes that Fed officials may rethink their stance that more rate hikes are needed to reduce price pressures.
But the rate is still above the central bank’s 2% target, and traders are pricing in a 92% chance of a rate hike at the Fed’s July meeting, according to the CME FedWatch Tool.
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