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The Consumer Price Report has traders preparing for inflation data




US stock futures traded higher early Wednesday, after central bank governor Jerome Powell said monetary policy would return to normal and interest rates could be raised earlier than planned.

The large futures indices indicated a gain of more than 0.1% when trading starts.

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Wall Street̵[ads1]7;s S&P 500 benchmark rose 0.9% after Powell said policies “in all likelihood” will return to normal as bond purchases and other economic stimulus decline. In a speech to the Senate Banking Committee, he said that ultra-low interest rates could be raised earlier than planned if necessary to cool down inflation, which is four decades high.

Traders will have their eyes on an important economic report on inflation.

POWELL PUMMELED OVER INFLATION, JOB AT CONFIRMATION HEARING, DESPITE BIPARTISAN SUPPORT OF FED STYLE

The Bureau of Labor Statistics is expected to say that the consumer price index rose 0.4% month-on-month in December. That will be half of November’s gain of 0.8%. On a year-over-year basis, look for prices to jump 7.0%. It will be the highest inflation level in almost 40 years and up from 6.8% in November.

If you include volatile food and energy costs, the core price index probably rose 0.5% last month, corresponding to the November increase. On an annual basis, the core CPI is estimated to jump by 5.4% in December. It is up from 4.9% in November and will mark the fastest growth in more than 30 years.

In Europe, London’s FTSE increased by 0.7%, Germany’s DAX rose 0.4% and France’s CAC rose 0.5%.

In Asia, the Nikkei 225 in Tokyo rose 1.9%, the Hang Seng in Hong Kong rose 2.8% and the Chinese Shanghai Composite Index rose 0.8%.

Ticker Safety Last Change Change%
Me: DJI DOW JONES AVERAGE 36252.02 +183.15 +0.51%
SP500 S&P 500 4713.07 +42.78 +0.92%
I: COMP NASDAQ COMPOSITE INDEX 15153.448663 +210.62 +1.41%

On Tuesday, the S&P 500 broke a five-day series with a fall and rose to 4,713.07. The Dow Jones Industrial Average rose 0.5% to 36,252.02. The Nasdaq composite rose 1.4% to 153.45.

Apple rose 1.7% and chip maker Nvidia rose 1.5%. Communications stocks and a mix of retailers and other companies that rely on direct consumption rose. Facebook parent Meta Platforms increased 1.9% and Gap increased 3%.

Shares in Biogen are trading 9% lower in the premarket after Medicare said on Tuesday that it would limit coverage of an Alzheimer’s drug to $ 28,000 a year only to patients taking the drug as part of clinical trials.

Shares in Dish Network are up more than 6% in the advance market after the New York Post reported it DirecTV and Dish Network holds back conversations about one possible merger.

GAS PRICES RISK AS OIL REMAINS ‘CITY STRONG’

The World Bank cut its forecast for global economic growth this year to 4.1% from 4.3%, partly due to supply chain disruptions that led to inflation. The agency estimates that the world economy grew by 5.5% in 2021.

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In the energy markets, the benchmark index for US crude oil rose 40 cents to $ 81.62 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose $ 2.99 on Tuesday to $ 81.22. Brent oil, used as the price base for international oils, increased by 26 cents to $ 83.99 per barrel in London. It got $ 2.85 last session to $ 83.72.

The Associated Press contributed to this report.



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