US stocks closed with modest gains Wednesday, slightly rebounding from the market’s worst session in two years amid volatile trade.
Indexes opened higher, then turned negative before swinging back to positive territory in the final minutes of the session. Early Wednesday, the producer price index fell 0.1% in August from the prior month, matching expectations. But markets were still digesting Tuesday’s consumer price index report, which showed a surprise monthly increase that cemented views for another big rate hike at next week’s Federal Reserve meeting.
While investors are still mostly betting on a third consecutive increase of 75 basis points, the odds of a 100-basis-point hike have climbed since Tuesday.
Here’s where US indexes stood as the market closed at 4:30 p.m. on Wednesday:
Nomura strategist Charlie McElligott says the market is starting to acknowledge that a hard landing is likely, as the latest consumer price index report Tuesday showed that inflation remains a persistent issue that the Fed will need to stay aggressive on.
Elsewhere, the European Union is seeking $140 billion worth of windfall taxes from low-cost energy companies to shield consumers from the continent’s surging energy prices.
Gold fell 0.42% to $1,694.43 an ounce.The10-year yield fell 1.7 basis points to 3.406%.
Bitcoin gained o.o3% to $19,848.02.
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