HomeBusinessStocks soar after inflation figures are released: stock market news today

Stocks soar after inflation figures are released: stock market news today

Stocks opened higher on Wednesday, with a heavy focus on consumer inflation data that could influence the Federal Reserve’s next policy decision.

The Dow Jones Industrial Average (^DJI) rose about 0.2%, while the S&P 500 (^GSPC) rose 0.3%. The Nasdaq Composite (^IXIC) opened 0.2% higher after falling more than 1% in the previous session.

The August Consumer Price Index report showed a bigger-than-expected increase in inflation last month, with headline prices rising 0.6% month-on-month and 3.7% year-over-year. The revival was caused by the recent increase in energy prices.

The data represents the final inflation print the Fed will get before next week’s meeting, and one of the key data points policymakers will consider when deciding whether to keep rates high for longer.

Prices for WTI crude oil (CL=F) and Brent crude oil (BZ=F) continued to rise on Wednesday, trading near ten-month highs. That put pressure on stocks and potentially hampered the Fed’s efforts to cool inflation.

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Eyes are still on the blockbuster Arm IPO, with investors expecting the offering to be priced on Wednesday, and trading to begin in New York on Thursday. The Softbank-backed British chip designer has opted to accept support at the top of its range ($47-$51 per share) or higher, according to Reuters sources.

Apple is also in the spotlight after the launch of the iPhone 15 and after China reported “security incidents” with the smartphone on Wednesday. Officials denied that China is taking steps to restrict the use of iPhones in government departments and state-owned enterprises, following reports that contributed to a decline in Apple’s shares.

At the same time, the EU has launched an investigation into the subsidies China gives to its EV manufacturers, in a bid to stave off a flood of cheap imports. Stocks in the European auto sector initially recovered after the announcement, but lost ground as fears of a Chinese response grew.

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