Dubai Telegraph - US stocks rebound as market eyes Fed rate cut after inflation data

EUR -
AED 3.938479
AFN 73.284283
ALL 98.19234
AMD 417.267449
ANG 1.943348
AOA 978.447316
ARS 1071.53141
AUD 1.629089
AWG 1.930079
AZN 1.82711
BAM 1.955647
BBD 2.17713
BDT 128.849948
BGN 1.9562
BHD 0.406468
BIF 3183.551653
BMD 1.072266
BND 1.425189
BOB 7.467417
BRL 6.152562
BSD 1.078316
BTN 90.972903
BWP 14.300884
BYN 3.528725
BYR 21016.42052
BZD 2.17343
CAD 1.49386
CDF 3073.115756
CHF 0.939162
CLF 0.03726
CLP 1028.119797
CNY 7.698019
CNH 7.63378
COP 4640.937963
CRC 551.556973
CUC 1.072266
CUP 28.415058
CVE 110.256399
CZK 25.259812
DJF 192.015021
DKK 7.459869
DOP 64.934934
DZD 142.958848
EGP 52.835878
ERN 16.083995
ETB 133.503285
FJD 2.399951
FKP 0.820465
GBP 0.830088
GEL 2.916983
GGP 0.820465
GHS 17.683621
GIP 0.820465
GMD 76.671173
GNF 9295.27488
GTQ 8.33535
GYD 225.592402
HKD 8.336174
HNL 27.205878
HRK 7.386875
HTG 141.888931
HUF 407.236454
IDR 16786.168917
ILS 4.020796
IMP 0.820465
INR 90.481213
IQD 1412.489812
IRR 45134.375558
ISK 148.766647
JEP 0.820465
JMD 171.076654
JOD 0.760348
JPY 163.686863
KES 139.08915
KGS 92.433433
KHR 4378.658423
KMF 493.644665
KPW 965.039476
KRW 1499.246878
KWD 0.328832
KYD 0.89853
KZT 530.808592
LAK 23665.153893
LBP 96559.167469
LKR 315.465391
LRD 204.33406
LSL 18.869628
LTL 3.166124
LVL 0.648604
LYD 5.232592
MAD 10.648369
MDL 19.338491
MGA 4988.610841
MKD 61.5252
MMK 3482.679288
MNT 3643.561097
MOP 8.633826
MRU 42.957649
MUR 49.75717
MVR 16.566921
MWK 1869.754141
MXN 21.634265
MYR 4.699212
MZN 68.521819
NAD 18.869628
NGN 1788.626462
NIO 39.676905
NOK 11.794827
NPR 145.556645
NZD 1.797446
OMR 0.412628
PAB 1.078316
PEN 4.044584
PGK 4.328662
PHP 62.679371
PKR 299.424042
PLN 4.325898
PYG 8431.342275
QAR 3.931893
RON 4.977143
RSD 116.980874
RUB 104.99181
RWF 1478.084695
SAR 4.02742
SBD 8.943509
SCR 14.390377
SDG 644.972153
SEK 11.594849
SGD 1.4214
SHP 0.820465
SLE 24.501684
SLL 22484.885861
SOS 616.251927
SRD 37.497551
STD 22193.748611
SVC 9.435264
SYP 2694.101668
SZL 18.864528
THB 36.687634
TJS 11.462006
TMT 3.763655
TND 3.347839
TOP 2.511359
TRY 36.822021
TTD 7.327428
TWD 34.580984
TZS 2878.975413
UAH 44.514627
UGX 3946.692121
USD 1.072266
UYU 45.046486
UZS 13787.924411
VEF 3884341.194834
VES 47.874003
VND 27101.532073
VUV 127.301648
WST 3.003615
XAF 655.905833
XAG 0.031788
XAU 0.000394
XCD 2.897854
XDR 0.808437
XOF 655.905833
XPF 119.331742
YER 267.878982
ZAR 19.79817
ZMK 9651.687743
ZMW 29.35571
ZWL 345.269328
  • RBGPF

    61.4000

    61.4

    +100%

  • JRI

    0.1600

    13.53

    +1.18%

  • RELX

    0.3200

    47.98

    +0.67%

  • SCS

    0.0600

    13.14

    +0.46%

  • BCC

    1.4700

    142.32

    +1.03%

  • NGG

    -0.3600

    63.94

    -0.56%

  • CMSC

    0.1600

    24.84

    +0.64%

  • RYCEF

    0.0100

    7.15

    +0.14%

  • RIO

    -3.0400

    64.43

    -4.72%

  • GSK

    -0.3700

    36.29

    -1.02%

  • VOD

    -0.0100

    9.31

    -0.11%

  • AZN

    -0.2000

    64.49

    -0.31%

  • BTI

    -0.0100

    35.39

    -0.03%

  • CMSD

    0.2350

    25.125

    +0.94%

  • BCE

    0.3000

    28.37

    +1.06%

  • BP

    -0.8800

    28.93

    -3.04%

US stocks rebound as market eyes Fed rate cut after inflation data
US stocks rebound as market eyes Fed rate cut after inflation data / Photo: SCOTT OLSON - GETTY IMAGES NORTH AMERICA/AFP/File

US stocks rebound as market eyes Fed rate cut after inflation data

Semiconductor stocks were among the strongest performers Wednesday as US stocks staged a rebound to finish higher following mixed inflation data.

Text size:

Wall Street indices initially fell following monthly consumer price index data, which kept the Federal Reserve on track to cut interest rates but weakened the case for a larger reduction.

The CPI rose 2.5 percent in August from a year ago, down from a 2.9 percent increase in July. It was the lowest annual figure since February 2021.

However, a measure of inflation that strips out volatile food and energy costs rose by a larger-than-expected 0.3 percent from a month earlier.

While investors widely expect the Federal Reserve to cut interest rates later this month, markets have been unsure of how big the cut will be.

Following Wednesday's inflation data, futures markets showed a jump in expectations for a smaller 0.25 percent cut instead of a half-point cut.

As the day progressed, investors realized the initial sell-off was an overreaction to the CPI data and that a Fed rate cut will still be positive for the stock market, said Art Hogan, chief market strategist at B. Riley Wealth.

All three major indices ended higher, led by the Nasdaq, which gained 2.2 percent.

Semiconductor companies -- which have been under pressure in recent weeks -- led Wednesday's gains, with artificial intelligence star Nvidia rising more than eight percent and Micron and Intel also notching big gains.

But XTB brokerage research director Kathleen Brooks said Wednesday's US inflation data "complicates the outlook for rate cuts further in the future".

While the data supports the Fed beginning to cut interest rates, "does it justify the 10 rate cuts that are currently priced in by the Fed Funds market over the next nine months?"

Oil prices recovered in part after a hammering on Tuesday, when Brent North Sea crude slid below $70 per barrel for the first time since December 2021 on concerns about the global outlook.

Analysts pointed to offshore platform production suspensions in the Gulf of Mexico due to Hurricane Francine.

Paris and Frankfurt stocks diverged ahead of an expected interest rate cut on Thursday, with Frankfurt boosted by a more than 16 percent surge in Commerzbank shares after Italian rival UniCredit announced it had acquired a nine percent stake.

The European Central Bank is expected to cut interest rates again this week as inflation drifts back down towards its two-percent target, but policymakers will likely stay tight-lipped on future moves.

Sentiment in London was dented by official data showing Britain's economy stalled in July.

Asia's main equity indices closed lower with a strong yen weighing on Tokyo's market, while Chinese stocks were knocked by concerns over China's struggling economy, analysts said.

- Key figures around 2050 GMT -

New York - Dow: UP 0.3 percent at 40,861.71 (close)

New York - S&P 500: UP 1.1 percent at 5,554.13 (close)

New York - Nasdaq Composite: UP 2.2 percent at 17,395.53 (close)

London - FTSE 100: DOWN 0.2 percent at 8,193.94 (close)

Paris - CAC 40: DOWN 0.1 percent at 7,396.83 (close)

Frankfurt - DAX: UP 0.4 percent at 18,330.27 (close)

Tokyo - Nikkei 225: DOWN 1.5 percent at 35,619.77 (close)

Hong Kong - Hang Seng Index: DOWN 0.7 percent at 17,108.71 (close)

Shanghai - Composite: DOWN 0.8 percent at 2,721.80 (close)

Dollar/yen: DOWN at 142.38 yen from 142.44 yen on Tuesday

Euro/dollar: DOWN at $1.1018 from $1.1020

Pound/dollar: DOWN at $1.3046 from $1.3080

Euro/pound: UP at 84.43 pence from 84.24 pence

Brent North Sea Crude: UP 2.1 percent at $70.61 per barrel

West Texas Intermediate: UP 2.4 percent at $67.31 per barrel

burs-jmb/md

O.Mehta--DT