Having traded in a 240-point range, the Dow Jones ended just at the flat line. The S&P 500 and Nasdaq outperformed the 30-stock index, gaining 0.3% and 0.5% respectively.
Indices saw a lackluster session in mid-week trading despite a softer inflation print for July. Consumer Price Inflation (CPI) rose by 0.1% month-on-month and 3.4% on an annualized basis. Core CPI, which excludes energy and food costs, rose 0.2% month-on-month and 2.5% from last year, the slowest pace since March 2021. Both figures were in-line with what analysts were anticipating.
The softer inflation data failed to not just inspire Wall Street but other asset classes as well. The US Dollar index remains near the mark of 100, the 10-year bond yield remained at elevated levels of 4.7%. Crude oil prices also remained near the mark of $90 a barrel. The only difference it brought about was the fact that the probability of the US Federal Reserve raising interest rates by 25 basis points in September fell to just above 40% from around 44% previously.
All eyes will now be on today’s Producer Price Inflation (PPI) print, which will be reported at 6 PM Indian Time. PPI is an important print as many components of this feed into the Personal Consumption Expenditure (PCE) inflation data, which is the Federal Reserve’s preferred inflation gauge.
In some results reported after market hours on Wednesday, Cerebras saw shares plunge 16% despite the company raising its full-year revenue guidance. Topline for the current quarter was below estimates. Cisco Systems shares also fell nearly 5% despite an earnings beat during the quarter.
