US stocks rose on Wednesday, looking to find a footing after hotter-than-expected inflation data drove a selloff and dashed hopes for interest-rate cuts before the summer.
The Dow Jones Industrial Average (^DJI) added 0.4%, bouncing back from a 500-point drop and the blue-chip benchmark’s worst day since March 2022. The S&P 500 (^GSPC) added roughly 0.6%, while the Nasdaq Composite added more than 0.7% — also on the heels of sharp declines.
Calm is settling in after the surprise consumer inflation print spooked the market. Investors are coming to grips with the prospect of the Federal Reserve holding fire on rate cuts until later in the year — and a potential “no landing” for the US economy.
Read more: What the Fed rate decision means for bank accounts, CDs, loans, and credit cards
Shares in Microsoft (MSFT) were recovering inching up in morning trade after the rate-sensitive tech megacap sank in the stock rout. Meanwhile, the 10-year Treasury yield (^TNX) pulled back slightly from the previous day’s jump to trade around 4.28%.
Comments by Fed officials Austan Goolsbee and Michael Barr in their appearances later in the day could provide more grist for the ever-present debate on rate timing.
A new wave of earnings reports also could deliver some impetus, with Cisco (CSCO), Kraft Heinz (KHC), and Warren Buffett-linked Occidental (OXY) among the big hitters on the list.
Investors were gripped by the wild fallout from a typo in Lyft’s (LYFT) financial update late Tuesday. Shares in the ride-hailing company initially rocketed 67%, but the rally lost steam after Lyft corrected an error in its statement that boosted its profit outlook. The stock remained up a more modest 30% in morning trade.
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