US stocks bounce back, Treasury yields steady after CPI, debate
Major U.S. stock indexes turn green, Nasdaq out front
Bets cemented on 25 bp rate cut from the Fed
Oil prices bounce back as supply, hurricane concerns offset demand worries
Updates to 14:47 EDT
By Stephen Culp
NEW YORK, Sept 11 (Reuters) - Wall Streetstocks rose onWednesday, reversing an earlier sell-off, and Brent crude prices rebounded from 3-1/2 year low as key inflation report cemented expectations that theU.S. Federal Reserve will issue a 25 basis point rate cut next week.
Investors also parsed Tuesday night'sU.S. Presidential debate to gauge potential policy shifts after the November election.
All three major U.S. stock indexes pulled a u-turn, transforming a sell-off into a rally by mid-afternoon. Tech stocks .SPLRCT, particularly chips .SOX, were clear outperformers, putting the Nasdaq ahead of the pack.
The Labor Department's Consumer Price Index (CPI) showed the annualinflation rate CPI shed 0.4 percentage pointsto a cooler-than-expected 2.5%. The core measure - which excludes food and energy - posted a hotter-than-expected monthly gain of 0.3%, and an annual increase of 3.2%.
"The inflation report kind of gave inflation bears a little something and it gave inflation bulls something," said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana.
"At least initially today, there was the feeling that a 50 basis point rate cut isn’t going happen," Carlson added. "Maybe now investors are starting to think that maybe that isn't a bad thing."
At last glance, they have baked in an 87% probability that the Fed will cut its key policy rate by 25 basis points at next week's policy meeting, with a dwindling 13% chance of a double-sized 50 bp cut, according to CME's FedWatch Tool.
Market participants paid close attention to late Tuesday's U.S. Presidential debate, listening closely for potential policy clues from Vice President Kamala Harris and former President Donald Trump.
The presidential hopefuls butted heads over abortion, the economy, immigration and Trump's legal woes at their rancorous first debate.
The Dow Jones Industrial Average .DJI rose 17.55 points, or 0.04%, to 40,754.51, the S&P 500 .SPX gained 31.23 points, or 0.57%, to 5,526.75 and the Nasdaq Composite .IXIC added 254.97 points, or 1.5%, to 17,280.85.
European stocks ended the session essentially flat as investors shifted their focus to the European Central Bank and its rate decision expected on Thursday.
The pan-European STOXX 600index .STOXX rose 0.01% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.31%.
Emerging market stocks lost 0.36%. MSCI's broadest index of Asia-Pacific shares outside Japan .MIAPJ0000PUS closed 0.25% lower, while Japan's Nikkei .N225 lost 1.49%.
Yields on 10-year U.S. Treasury notes steadied from an earlier slump in which the benchmark rate touched its lowest level since June 2, 2023.
Benchmark 10-year notes US10YT=RR last fell 5/32 in price to yield 3.6609%, from 3.644% late on Tuesday.
The 30-year bond US30YT=RR last fell 9/32 in price to yield 3.9691%, from 3.954% late on Tuesday.
The dollar was last nominally higher against a basket of world currencies after inflation data appeared to lock in a smaller, 25 bp interest rate cut.
The dollar index .DXY rose 0.04%, with the euro EUR= up 0.02% to $1.1021.
The Japanese yen strengthened 0.16% versus the greenback at 142.27 per dollar, while Sterling GBP= was last trading at $1.3048, down 0.24% on the day.
Oil prices steadied after Tuesday's sell-off as a drop in U.S. crude inventories and potential supply disruptions from Hurricane Francine balanced against concerns over softening global demand.
U.S. crude CLcv1 jumped 2.37% to settle at $67.31 perbarrel, while and Brent LCOcv1 settled at $70.61 per barrel, up 2.05% onthe day.
Gold prices dipped as hopes dimmed for a larger interest rate cut from the Fed at next week's policy meeting.
Spot gold XAU= dropped 0.2% to $2,512.00 an ounce.
World FX rates YTD http://tmsnrt.rs/2egbfVh
Asian stock markets https://tmsnrt.rs/2zpUAr4
Inflation gauges https://reut.rs/3TpX1Cm
Reporting by Stephen Culp; Additional reporting by Lawrence White in London; Editing by Alexandra Hudson and Nick Zieminski
To read Reuters Markets and Finance news, click on https://www.reuters.com/finance/markets
Relaterade tillgångar
Senaste nytt
Ansvarsfriskrivning: XM Group-enheter tillhandahåller sin tjänst enbart för exekvering och tillgången till vår onlinehandelsplattform, som innebär att en person kan se och/eller använda tillgängligt innehåll på eller via webbplatsen, påverkar eller utökar inte detta, vilket inte heller varit avsikten. Denna tillgång och användning omfattas alltid av i) villkor, ii) riskvarningar och iii) fullständig ansvarsfriskrivning. Detta innehåll tillhandahålls därför uteslutande som allmän information. Var framför allt medveten om att innehållet på vår onlinehandelsplattform varken utgör en uppmaning eller ett erbjudande om att ingå några transaktioner på de finansiella marknaderna. Handel på alla finansiella marknader involverar en betydande risk för ditt kapital.
Allt material som publiceras på denna sida är enbart avsett för utbildnings- eller informationssyften och innehåller inte – och ska inte heller anses innehålla – rådgivning och rekommendationer om finansiella frågor, investeringsskatt eller handel, dokumentation av våra handelskurser eller ett erbjudande om, eller en uppmaning till, en transaktion i finansiella instrument eller oönskade finansiella erbjudanden som är riktade till dig.
Tredjepartsinnehåll, liksom innehåll framtaget av XM såsom synpunkter, nyheter, forskningsrön, analyser, kurser, andra uppgifter eller länkar till tredjepartssajter som återfinns på denna webbplats, tillhandahålls i befintligt skick, som allmän marknadskommentar, och utgör ingen investeringsrådgivning. I den mån som något innehåll tolkas som investeringsforskning måste det noteras och accepteras att innehållet varken har varit avsett som oberoende investeringsforskning eller har utarbetats i enlighet med de rättsliga kraven för att främja ett sådant syfte, och därför är att betrakta som marknadskommunikation enligt tillämpliga lagar och föreskrifter. Se till så att du har läst och förstått vårt meddelande om icke-oberoende investeringsforskning och riskvarning om ovannämnda information, som finns här.