By Chelsey Dulaney and Gunjan Banerji
Inflation is back in the spotlight, as the Trump rally shows signs of stalling.
The October consumer-price index showed that prices were up 2.6% from a year earlier, in line with economists' expectations. Core inflation, at 3.3%, also matched forecasts.
The report boosted investor confidence that the Federal Reserve will ease policy again when it next meets in December. Futures prices implied a roughly three-in-four chance the Fed will use that meeting to deliver its third rate cut of the year, up from a probability of less than 60% a day earlier, CME Group data showed.
Markets have been on a tear since Donald Trump's election victory. Shares of Tesla, which have been linked to his win, kept rising in early trading Wednesday.
In recent trading:
Stocks opened mixed, reversing course after the inflation report.
Treasury yields traded lower. The 10-year yield fell to 4.384%.
Bitcoin traded near $88,000. The cryptocurrency had approached $90,000 Tuesday.
Coming up later:
Networking-equipment company Cisco Systems is due to report earnings after Wednesday's closing bell.
Another gauge of inflation, the producer-price index, is due early Thursday.
Write to Chelsey Dulaney at chelsey.dulaney@wsj.com and Gunjan Banerji at gunjan.banerji@wsj.com
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(END) Dow Jones Newswires
November 13, 2024 09:39 ET (14:39 GMT)
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