© Reuters.
By Liz Moyer
Investing.com — U.S. stocks open slightly higher a day after a market rout induced by a hotter-than-expected for August.
At 9:46 ET (13:46 GMT), the rose 123 points, or 0.4%, while the rose 0.5% and the rose 0.5%.
Tuesday’s sharp drop – tech stocks sold off 5% – was the worst since June 2020. Investors had hoped a cooler inflation report would encourage the Federal Reserve to act less aggressively on interest rates as it tries to tame inflation.
Now, the market is expecting the central bank to raise its benchmark rate by 0.75 percentage points when it meets next week, and there is increasing sentiment that the Fed may raise by a full point.
Fed officials in recent weeks have said they would do whatever it takes to tame still stubborn inflation, even if that means pain to the economy. While gasoline prices have fallen from their peak in June, food prices continue to climb, pinching household budgets.
Another inflation measure, the , dropped 0.1% in August from the month before, meeting expectations.
Tech stocks sold off sharply on Tuesday and some continued to decline on Wednesday. Meta Platforms Inc (NASDAQ:), the Facebook parent, is down 1.4% after falling more than 9% a day earlier.
Starbucks Corporation (NASDAQ:) shares rose 5% a day after telling investors it expected double-digit revenue growth in coming quarters.
Oil rose. was up 2%, to $89.25 a barrel, while crude rose 2% to $95.06 a barrel. dipped 0.1% to $1,715 an ounce.
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