On Wednesday, stocks increased as investors took in a hotter-than-anticipated core inflation reading for August.
90 points, or 0.3%, more were added to the Dow Jones Industrial Average. The Nasdaq Composite and S&P 500 both increased by 0.2%.
In August, the consumer price index increased 0.6% month over month and increased 3.7% year over year. According to economists surveyed by Dow Jones, 0.6% and 3.6% growth were anticipated.
Contrary to expectations, the core CPI, which excludes volatile food and energy, climbed by 0.3% and 4.3%, respectively, as opposed to the expected increases of 0.2% and 4.3%. The core figure is the statistic that Federal Reserve policymakers pay greater attention to because it gives a more accurate picture of long-term inflation trends.
According to Greg McBride, chief financial analyst at Bankrate, “the Federal Reserve is expected to hold interest rates steady at their meeting next week, but there are still some concerns within this CPI report – petrol prices, motor vehicle insurance, maintenance and repair – that the Fed won’t dispel the idea of an additional interest rate hike before year-end.”
Source (CNBC)
