Stocks opened higher on Wednesday as inflation continued to cool in the US, weakening the case for more rate hikes from the Federal Reserve.
The S&P 500 (^GSPC) was up nearly 1%, while the Dow Jones Industrial Average (^DJI) gained about 0.6%. The tech-heavy Nasdaq (^IXIC) traded just over 1%. All three major benchmark indices ended with gains on Tuesday.
The Consumer Price Index (CPI) report eased to its lowest rate since March 2021, bolstering hopes that Fed officials may reconsider their stance that more rate hikes are needed to ease price pressures.
But the rate remains above the central bank̵[ads1]7;s 2% target, and traders are pricing in a 91% chance of a rate hike at the Fed’s July meeting, according to the CME FedWatch Tool.
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