US stocks rise as inflation reading comes in hot but in line with estimates

IANS News Agency

US stocks rose on Wednesday after inflation data showed prices rising at the fastest pace in almost four decades.
The Bureau of Labor Statistics reported that the Consumer Price Index increased by 7 percent last month, in line with the median forecast of 7 percent. The pace of inflation is the strongest since 1982 and is slightly faster than in November.

The report shows that inflation worsened through December 2021, as the Omicron variant spread across the country.
The US indexes were at 9:30 a.m. On Wednesday, it will be open.

The Federal Reserve has already told the markets that it expects a tight labor market, rising wages, and low unemployment to continue, according to George Ball, chairman of the investment firm.

The inflation reading that indicated the Fed was likely to continue tightening monetary policy and was on track to begin hiking interest rates in March was a factor that helped the indexes rise.
The Fed's plans could be altered by the reading of the CPI.

"If the political pressure on the Fed is not reduced, they will have to raise rates four or more times this year and possibly more than that next year," said Chris. The market is giving the Fed the benefit of the doubt, but risks are rising that inflation will force the Fed into a rate-hiking cycle that will cause a shock to the stock market.

The yield on the 10-year Treasury note fell from Tuesday's rate. The yield spiked to 1.80% in the previous session, the highest level since before the COVID-19 Pandemic. Bond yields and prices move in opposite directions.

The oil prices went up. West Texas Intermediate crude oil increased in price. The international benchmark for crude oil, known as Brent, increased by 0.56% to $84.21 per barrel.

The crude oil inventories number will be released at 10:30 a.m. Wednesday.

The price of gold was $1,819.52 per ounce.
Business Insider has an original article.