US stocks trade higher after inflation data

US stocks trade higher after inflation data

New York: US stocks traded higher on Wednesday after erasing earlier losses, as investors were digesting the latest inflation data.

At midday, the Dow Jones Industrial Average added 49.98 points, or 0.20 per cent, to 24,690.43. The S&P 500 increased 13.61 points, or 0.51 per cent, to 2,676.55.

The Nasdaq Composite Index was up 67.69 points, or 0.97 per cent, to 7,081.20, reports Xinhua.

US equities opened lower on Wednesday following the release of stronger-than-expected inflation report.

The Consumer Price Index (CPI) rose 0.5 per cent in January on a seasonally adjusted basis, the US Labor Department said on Wednesday. Over the last 12 months, the all items index rose 2.1 per cent.

Excluding the volatile food and energy components, the core consumer prices gained 0.3 per cent in January. In the 12 months through January, the core CPI increased 1.8 per cent.

Analysts said the string of data all beat market expectations and thus rekindled concerns of surging inflation, which had helped to send the US equities plunging to two-year lows last week.

Investors worried that strong rise in inflation would push the Federal Reserve to raise interest rates as many as three times later this year.

Market expectations for a rate-hike move in December are now at nearly 62 per cent, up from 50 per cent the day before, according to the CME’s FedWatch tracker.

IANS