New York, NY – September 13, 2023 – Wall Street shares rose on Wednesday, as investors took comfort in data showing that inflation in the United States had slowed somewhat in August.
Wall Street-Image Source: Sky News
The Dow Jones Industrial Average rose 0.06% to 34,667.28, while the S&P 500 gained 0.02% to 4,462.65. The Nasdaq Composite was little changed at 13,773.67.
The Labor Department said on Wednesday that the Consumer Price Index rose 0.6% in August, below the 0.7% increase expected by economists. The annual rate of inflation slowed to 3.7% from 3.2% in July.
The data suggests that inflation may be peaking, but it is still running well above the Federal Reserve’s target of 2%. The Fed is expected to raise interest rates several times this year in an effort to cool inflation.
“The inflation data was a bit of a relief, but it’s still too high,” said David Sowerby, chief investment officer at GAM Investments. “The Fed is going to have to keep raising rates to bring it down.”
Investors are also looking ahead to the Fed’s September meeting, where the central bank is expected to announce its next interest rate hike.
“We’ll be looking for any clues about how the Fed views the inflation outlook,” said Sowerby. “If they sound hawkish, that could weigh on stocks.”
