- US stocks gained on Wednesday as investors’ inflation concerns eased.
- CPI data released Wednesday was in line with economists’ expectations.
- The House is set to vote on the $1.9 trillion stimulus bill on Wednesday.
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
US stocks gained on Wednesday as inflation fears eased and investors prepared for the final passage of the $1.9 trillion stimulus bill.
The Consumer Price Index, a key measure of inflation, gained 1.7% on a year-on-year basis, in line with economists’ expectations. Consumer prices increased by 0.4% in February, also in line with expectations. But some analysts say the CPI isn’t higher because of the way its calculated.
“A large part of the calculation is shelter, but in the CPI, shelter is accounted for mainly through rent prices in cities, and people have scorned city life for suburbs,” said Nancy Davis, the founder of Quadratic Capital Management and portfolio manager of the Quadratic Interest Rate Volatility and Inflation Hedge exchange-traded fund.
“Right now, some housing markets are booming, but some aren’t, and that is keeping the CPI down,” Davis said. “There are certainly pockets of inflation in other parts of the economy, most notably in food and gasoline prices.”
The House is set to vote on the $1.9 trillion relief plan on Wednesday and is expected to pass it, sending it to President Joe Biden for his signature.
Here’s where US indexes stood after the 9:30 a.m. ET open on Monday:
- S&P 500: 3,902.02, up 0.69%
- Dow Jones industrial average: 32,008.68 up 0.55% (175.94 points)
- Nasdaq composite: 13,236.40, up 1.27%
After the GameStop frenzy, US regulators are considering rule changes for options trading and short selling, and whether any vulnerabilities in the stock market need to be addressed.
JPMorgan said it would launch a product to give investors exposure to cryptocurrencies, the latest sign that bitcoin’s meteoric rise is drawing widespread interest on Wall Street.
Bitcoin climbed by about 5%, to $56,111, its highest since February 22.
Oil prices rose. West Texas Intermediate crude jumped as much as 1%, to $64.68 per barrel. Brent crude, oil’s international benchmark, rose by 0.93%, to $68.15 per barrel.
Gold jumped 0.07%, to $1,718.30 per ounce.
Powered by WPeMatico
