Stocks Open Higher as Focus Shifts to Consumer Inflation Data
Stocks opened higher Wednesday, with the focus firmly on consumer inflation data that could sway the Federal Reserve’s next policy decision.
Stock Market Performance
- The Dow Jones Industrial Average (^DJI) was up around 0.2%.
- The S&P 500 (^GSPC) jumped 0.3%.
- The Nasdaq Composite (^IXIC) opened 0.2% higher after retreating more than 1% the previous session.
Consumer Price Index Report
August’s Consumer Price Index report showed a bigger-than-expected jump in inflation last month:
- Headline prices rose 0.6% month to month.
- Headline prices rose 3.7% on an annual basis.
The increase in inflation was driven by the recent rally in energy prices.
Importance for Federal Reserve
The data represents the last inflation print the Fed will get before its meeting next week. It is one of the most important data points policymakers will consider in deciding whether to keep interest rates higher for longer.
Impact of Rising Oil Prices
Prices for WTI crude (CL=F) and Brent (BZ=F) oil continued to rise on Wednesday, trading near 10-month highs. This rise in oil prices puts pressure on stocks and potentially hampers the Fed’s efforts to cool inflation.
Other Market News
Eyes are still on the blockbuster Arm IPO, with investors expecting pricing for the offering on Wednesday and trading to start in New York on Thursday. Additionally, Apple is in focus after the launch of the iPhone 15 and as China flagged “security incidents” with the smartphone on Wednesday. The EU has also launched a probe into the subsidy China gives its EV makers to ward off a flood of cheap imports.
The stock market opened higher as investors awaited consumer inflation data. Rising oil prices and other market developments continue to influence market sentiment.