The S&P 500 and the Nasdaq bounced on Wednesday after a five-day selloff, but inflation and rate hike worries capped the gains after a higher-than-expected rise in September producer prices.
The Labor Department's producer prices index rose 8.5% in the 12 months through September, slightly higher than an estimated 8.4% rise. The reading was still lower than an 8.7% increase in August.
Persistent inflation has increased concerns about the Fed's aggressive monetary action tipping the world's largest economy into a recession.
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"It's stubborn and some people are hoping that we had peak inflation and it's going to come down quickly," said Joe Saluzzi, partner at Themis Trading in Chatham, New Jersey.
"It is not going to be that way. That's what the Fed has been looking at and that's why they're raising rates the way they are. So this will take time and this is not going to be a quick thing."
Money markets are pricing in a 92% chance of another 75-basis-point hike in November. Investors will also scrutinize the Fed's September meeting minutes, due later in the day, for more clarity on the central bank's rate hike trajectory.
"The thing we're looking for from the FOMC is some evidence that it is open-minded, that they will consider being a lot more flexible," said Hugh Johnson, chief economist of Hugh Johnson Economics at Albany, New York.
"The comments are going to be just as hawkish as they have been."
At 10:00 a.m. ET, the Dow Jones Industrial Average was up 117.80 points, or 0.40%, at 29,356.99, the S&P 500 was up 9.26 points, or 0.26%, at 3,598.10, and the Nasdaq Composite was up 19.97 points, or 0.19%, at 10,446.16.
Battered megacap companies Apple Inc, Amazon.com, and Alphabet Inc were up between 0.58% and 1.16%.
Chip shares including Nvidia Corp, Qualcomm Inc, Micron Technology Inc, Advanced Micro Devices and Intel Corp were mixed.
The United States is scrambling to tackle unintended consequences of its new export curbs on China's chip industry that could inadvertently harm the semiconductor supply chain.
The Biden administration has allowed at least two non-Chinese chipmakers operating in China to receive restricted goods and services without their suppliers seeking licenses, the report said.
PepsiCo Inc gained 3.35% after the soft-drinks maker raised its annual revenue and profit forecasts on firm demand for its sodas and snacks despite multiple price increases.
Boeing Co slipped 0.74% after Credit Suisse started its coverage on the planemaker with an "underperform" rating and Street low price target.
Investors will also monitor comments from Fed's Minneapolis President Neel Kashkari, Washington's Vice Chair for Supervision Michael Barr, and New York's Governor Michelle Bowman.
Declining issues outnumbered advancers for a 1.74-to-1 ratio on the NYSE and for a 1.47-to-1 ratio on the Nasdaq.
The S&P index recorded no new 52-week high and 41 new lows, while the Nasdaq recorded 7 new highs and 201 new lows.
(Reuters Reporting by Ankika Biswas, Shreyashi Sanyal & Bansari Mayur Kamdar in Bengaluru; Editing by Anil D'Silva and Arun Koyyur)
For more daily stock coverage, subscribe to our Closing Bell e-newsletter.
-
S&P 500 Tops 7,000, Fed Pauses Rate Cuts: Stock Market TodayInvestors, traders and speculators will probably have to wait until after Jerome Powell steps down for the next Fed rate cut.
-
The Met Opera May Sell Its Iconic Paintings. Is it a Good Investment?Buying the Marc Chagall murals would come with a big stipulation attached.
-
Do You Really Need All Those Phone Plan Perks?Unlimited data plans now come bundled with streaming, travel perks and device deals — but many people pay for extras they rarely use.
-
S&P 500 Tops 7,000, Fed Pauses Rate Cuts: Stock Market Today
Investors, traders and speculators will probably have to wait until after Jerome Powell steps down for the next Fed rate cut.
-
S&P 500 Hits New High Before Big Tech Earnings, Fed: Stock Market TodayThe tech-heavy Nasdaq also shone in Tuesday's session, while UnitedHealth dragged on the blue-chip Dow Jones Industrial Average.
-
Dow Rises 313 Points to Begin a Big Week: Stock Market TodayThe S&P 500 is within 50 points of crossing 7,000 for the first time, and Papa Dow is lurking just below its own new all-time high.
-
January Fed Meeting: Updates and CommentaryThe January Fed meeting marked the first central bank gathering of 2026, with Fed Chair Powell & Co. voting to keep interest rates unchanged.
-
Nasdaq Leads Ahead of Big Tech Earnings: Stock Market TodayPresident Donald Trump is making markets move based on personal and political as well as financial and economic priorities.
-
Nasdaq Adds 211 Points as Greenland Tensions Ease: Stock Market TodayWall Street continues to cheer easing geopolitical tensions and President Trump's assurances that there will be no new tariffs on Europe.
-
Dow Soars 588 Points as Trump Retreats: Stock Market TodayAnother up and down day ends on high notes for investors, traders, speculators and Greenland.
-
Dow Dives 870 Points on Overseas Affairs: Stock Market TodayFiscal policy in the Far East and foreign policy in the near west send markets all over the world into a selling frenzy.
