S&P 500, Nasdaq rise after five-day selloff,
rate-hike fears weigh...
Oct 12 (Reuters) - The S&P 500 and the Nasdaq bounced on Wednesday after a five-day selloff, but inflation and rate hike worries capped the gains after a higher-than-expected rise in September producer prices.
The Labor Department's producer prices index rose 8.5% in the 12 months through September, slightly higher than an estimated 8.4% rise. The reading was still lower than and 8.7% increase in August. read more
Persistent inflation has increased concerns about the Fed's aggressive monetary action tipping the world's largest economy into a recession.
"It's stubborn and some people are hoping that we had peak inflation and it's going to come down quickly," said Joe Saluzzi, partner at Themis Trading in Chatham, New Jersey.
"It is not going to be that way. That's what the Fed has been looking at and that's why they're raising rates the way they are. So this will take time and this is not going to be a quick thing."
Money markets are pricing in a 92% chance of another 75-basis-point hike in November. Investors will also scrutinize the Fed's September meeting minutes, due later in the day, for more clarity on the central bank's rate hike trajectory. FEDWATCH
"The thing we're looking for from the FOMC is some evidence that it is open-minded, that they will consider being a lot more flexible," said Hugh Johnson, chief economist of Hugh Johnson Economics at Albany, New York.
"The comments are going to be just as hawkish as they have been."
At 10:00 a.m. ET, the Dow Jones Industrial Average (.DJI) was up 117.80 points, or 0.40%, at 29,356.99, the S&P 500 (.SPX) was up 9.26 points, or 0.26%, at 3,598.10, and the Nasdaq Composite (.IXIC) was up 19.97 points, or 0.19%, at 10,446.16....
reuters.com
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