Stocks were mixed Wednesday as market participants digested a hotter-than-expected inflation report ahead of the Federal Reserve's upcoming policy meeting next week. The Dow Jones Industrial Average lost about 70 points, while the S&P 500 and Nasdaq Composite added 0.1% and 0.3%, respectively.
Here's how the market settled on Wednesday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
In the spotlight, August's consumer price index (CPI) reading rose by a seasonally adjusted 0.6% for the month and 3.7% from a year ago, according to the Labor Department's report, with the annual reading coming in slightly above analyst estimates. So-called core CPI, which excludes the cost of food and energy, rose by 0.3% and 4.3%, respectively, topping analyst's monthly estimate.
Policymakers usually focus more on core CPI as it provides a better gauge on how inflation is impacting consumers over the long term. Wall Street is largely expecting the central bank to hold interest rates at their current range at next week's meeting. However, 40% of market analysts are anticipating one final hike in November, according to the CME Group's FedWatch tool.
Elsewhere, American Airlines
Shares of prominent COVID vaccine makers Moderna
Citigroup
Google
"It's not something that was an easy decision to make, and it definitely isn't a conversation any of us wanted to have again this year," said Brian Ong, recruiting vice president at Google, in a virtual meeting with employees on Wednesday, quoted by CNBC. "Given the base of hiring that we've received the next several quarters, it's the right thing to do overall."
For Thursday, market participants will react to another inflation reading of producer prices and U.S. retail sales for August.