September 13, 2023

Stocks Surge as Inflation Data Points to Reacceleration: Latest Stock Market News Today

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Stocks Edge Higher as Focus Turns to Inflation Data

Introduction

Stocks edged higher on Wednesday, with the focus firmly on consumer inflation data that could sway the Federal Reserve’s next policy decision.

Market Performance

The Dow Jones Industrial Average (^DJI) was relatively flat, up less than 0.1%.
The S&P 500 (^GSPC) jumped 0.3%.
The Nasdaq Composite (^IXIC) was 0.6% higher after retreating more than 1% during the previous session.

Inflation Jump

August’s Consumer Price Index report showed a bigger-than-expected jump in inflation last month, with headline prices rising 0.6% month to month and 3.7% on an annual basis. The uptick was driven by the recent rally in energy prices.

Importance for the Federal Reserve

The data represents the last inflation print the Fed will get before its meeting next week and is one of the most important data points policymakers will consider in deciding whether to keep interest rates higher for longer.

Impact of Energy Prices

Prices for WTI crude (CL=F) and Brent (BZ=F) oil continued to rise on Wednesday, trading near 10-month highs. This put pressure on stocks as well as potentially hampering the Fed’s efforts to cool inflation.

Arm IPO and Apple’s iPhone Launch

Investors are closely watching the blockbuster Arm IPO, with pricing expected on Wednesday and trading to start in New York on Thursday. Apple is also in focus after its launch of the iPhone 15. China flagged “security incidents” with the smartphone on Wednesday, but officials denied moving to curb the use of iPhones in government departments and state-owned companies.

EU Probe into China’s EV Subsidies

The EU has launched a probe into the subsidy China gives its EV makers to ward off a flood of cheap imports. Shares in Europe’s auto sector initially rallied but lost ground as fears of a Chinese backlash grew.

Conclusion

The stock market is closely monitoring consumer inflation data as it will impact the Federal Reserve’s policy decision. Rising energy prices and other factors continue to influence market performance and investor sentiment.