Dow ends higher amid bets inflation cooled further in December; European markets close higher as investors look ahead to U.S. inflation data
The Dow racked up gains Wednesday, as investors increased bullish bets on stocks on optimism that data due Thursday will show a further slowdown in inflation.
The Dow Jones Industrial Average gained 0.80%, or 268 points, the Nasdaq Composite climbed 1.8%, and the S&P 500 climbed 1.3%.
Following recent data pointing to cooling inflation including easing wage pressures seen in the December jobs report, investors are “looking for further news showing inflation is headed lower in the CPI data,” Wells Fargo said in a note ahead of the consumer price index report due Thursday.
Economists are expecting that the consumer price index to ease to 6.5% in December year-on-year from 7.1%, supported by lower car prices, oil prices, and rent prices.
Expectations for further signs of easing inflation pressures have buoyed expectations for a less hawkish Fed.
The pan-European Stoxx 600 index provisionally closed up 0.4%, with most sectors and major bourses posting gains. Retail stocks saw the largest uptick, up 2%, while insurance bucked the trend to end the session down 1.1%. German chemicals company Wacker Chemie was up 8.8% in late afternoon trade after UBS analysts said it should outperform average analyst estimates in the next quarter and reiterated a “buy” rating on the stock.
Source: CNBC, Investing.com