Stock Market Today: Markets Rebound from Inflation-Fueled Selloff

Wednesday, 11 September 2024, 13:06

Markets have shown a turnaround in the stock market today as investors react to a mixed inflation report. Despite initial selling pressure, major indexes mostly stabilized after a volatile session. The stock selloff was driven by hotter-than-expected inflation data, impacting interest rates outlook significantly.
Businessinsider
Stock Market Today: Markets Rebound from Inflation-Fueled Selloff

Daily Market Wrap: Stocks Stabilize Amid Inflation Concerns

On Wednesday, US stocks showcased a mixed performance, with markets exhibiting resilience following a challenging inflation report. The stock market today was marked by significant volatility, as key indexes reversed course from earlier losses. The Dow Jones Industrial Average faced a decline of 600 points, only to recover slightly by day’s end, highlighting the dynamic nature of the markets.

Inflation Report Impact on Fed Rate Cuts Outlook

Traders were wary after the core consumer prices exceeded expectations for August, leading to increased speculation around the Fed's monetary policy adjustments. Following the news, markets recalibrated their predictions for fed rate cuts, now estimating an 85% probability of a modest quarter-point rate reduction in the upcoming policy meeting. Conversely, the likelihood of a deeper 50 basis-point cut has dwindled to just 15%, shifting the market's outlook significantly.

Key Takeaways

  • Inflation report causes initial stock selloff but leads to market stabilization.
  • Markets now favor a 25 basis-point fed rate cut next week over larger cuts.
  • Volatility remains as investors assess inflation and interest rate dynamics.

This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


Related posts


Newsletter

Get the most reliable and up-to-date financial news with our curated selections. Subscribe to our newsletter for convenient access and enhance your analytical work effortlessly.

Subscribe