U.S. stocks opened higher on Wednesday as investors digested another month of persistent inflation data that met economists’ expectations and likely pointed to a Federal Reserve rate cut next week.
The Dow Jones Industrial Average (^DJI) rose about 0.2%, while the S&P 500 (^GSPC) rose almost 0.5%. The tech-heavy Nasdaq Composite (^IXIC) also contributed to the overall gain, up about 0.8%.
New inflation data on Wednesday showed consumer prices rose as forecast in November, keeping the Federal Reserve on track to cut rates again in December.
The latest data from the Bureau of Labor Statistics shows that the Consumer Price Index (CPI) rose 2.7% in November from the previous year, up slightly from October’s annual price increase of 2.6%. The annual increase was in line with economists’ expectations.
On a ‘core’ basis, which excludes the more volatile costs of food and gas, prices rose 0.3% in November from the previous month, similar to October, and were down for the fourth month consecutive annual percentage of 3.3%.
Earlier on Wednesday, a report that China is considering devaluing its currency sent ripples across global stock markets and boosted the dollar (DX=F). The possible move is seen as a response to higher tariffs promised by newly elected President Donald Trump, as a weaker yuan (CNHUSD=X) could make Chinese exports cheaper.
On the corporate front, shares of Macy’s (M) fell more than 10% in early trading after the department store chain cut its full-year earnings guidance. The retailer announced its third-quarter results after delaying the report while it investigated an employee who hid up to $154 million in expenses.
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