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Wall Street saw a modest rebound on Wednesday, spurred by an in-line inflation report that reinforced expectations for a December rate cut. The U.S. dollar continued to gain strength, buoyed by potential tariff tailwinds under the new Trump administration.
Bitcoin again captured headlines as it surged past $93,000, lifting its market capitalization to $1.8 trillion and fueling a wave of enthusiasm across crypto markets, with Dogecoin up over 12%.
The Consumer Price Index met expectations in October, with the annual headline rate increasing to 2.6% and the core rate steady at 3.3%.
The report alleviated concerns over a potential rate pause in December, driving market odds for a 25-basis-point cut from 58% to 82%, as per the CME FedWatch tool. Treasury yields eased slightly in response to the report.
By midday in New York, all major U.S. equity indices were in slightly positive territory, although with the tech-heavy Nasdaq 100 underperforming. Leading sectors included consumer discretionary and real estate, while utilities and health care lagged.
In political developments, U.S. Sen. John Thune (R-SD) was elected as the new majority leader in a secret ballot.
The U.S. dollar, tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:UUP), hit its highest level since November 2023, marking a fresh one-year high.
Gold dipped 0.6%, on track for a fourth consecutive loss.
Wednesday’s Performance In Major US Indices, ETFs
| Major Indices | Price | 1-day %chg |
| Dow Jones | 44,084.11 | 0.4% |
| Russell 2000 | 2,401.00 | 0.4% |
| S&P 500 | 6,002.13 | 0.3% |
| Nasdaq 100 | 21,073.91 | 0.1% |
Updated at 12:30 p.m. ET
According to Benzinga Pro data:
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The SPDR S&P 500 ETF Trust (NYSE:SPY) rose 0.3% to $598.42.
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The SPDR Dow Jones Industrial Average (NYSE:DIA) rose 0.4% to $440.97.
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The tech-heavy Invesco QQQ Trust Series (NASDAQ:QQQ) flattened at $513.06.
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The iShares Russell 2000 ETF (NYSE:IWM) inched 0.3% higher to $238.1.
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The Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) outperformed, rising 1%. The Utilities Select Sector SPDR Fund (NYSE:XLU) lagged, down 0.3%.
Wednesday’s Stock Movers
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Rivian Automotive Inc. (NASDAQ:RIVN) rallied over 18% after the company announced a joint venture launch with Volkswagen valued at up to $5.8 billion.
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Albemarle Corp. (NYSE:ALB) rose 6% after Berenberg raised the stock price target from $81 to $102.
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Advanced Micro Devices Inc. (NASDAQ:AMD) fell 2.4% after the company announced a 4% cut to its global workforce.
Stocks reacting to earnings report were: