US stocks opened higher on Wednesday as investors digested another month of sticky inflation data that met economists’ expectations and likely pointed to a Federal Reserve interest rate cut next week.
The Dow Jones Industrial Average (^DJI) increased about 0.2%, while the S&P 500 (^GSPC) jumped nearly 0.5%. The tech-heavy Nasdaq Composite (^IXIC) also added to across-the-board gains, rising roughly 0.8%.
Fresh inflation data out on Wednesday showed consumer prices rose as forecast in November, keeping the Federal Reserve on track to lower interest rates again in December.
The latest data from the Bureau of Labor Statistics showed that the Consumer Price Index (CPI) increased 2.7% over the prior year in November, a slight uptick from October’s 2.6% annual gain in prices. The yearly increase matched economist expectations.
On a “core” basis, which strips out the more volatile costs of food and gas, prices in November climbed 0.3% over the prior month, matching October, and posted an annual rate of 3.3% for the fourth consecutive month.
Earlier on Wednesday, a report that China is considering devaluing its currency sent ripples through global stock markets and boosted the dollar (DX=F). The potential move is seen as a response to higher tariffs promised by President-elect Donald Trump, as a weaker yuan (CNHUSD=X) could make Chinese exports cheaper.
On the corporate front, Macy’s (M) stock sank over 10% in early trading after the department store chain lowered its full-year profit guidance. The retailer released its third-quarter results after delaying the report while it investigated an employee hiding up to $154 million in expenses.
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