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Stock market today: US stocks hold steady after rally as investors wait on more economic data

Stock market today: US stocks hold steady after rally as investors wait on more economic data
  • US stocks held steady on Wednesday after a solid rally during Tuesday's session.

  • Major averages were relatively flat early Wednesday after the S&P 500 notched a fresh record Tuesday.

  • Investors are eyeing upcoming economic data this week to shape their expectations of Fed rate cuts.

US stocks held steady on Wednesday after seeing a strong rally on Tuesday. Major averages traded relatively flat, with the S&P 500 dipping slightly after closing Tuesday's session at a fresh all-time high.

Investors are eyeing more economic data to come this week, which could serve as guidance for the Fed when determining the path of interest rate cuts this year. The producer price index, which measures wholesale inflation, and initial jobless claims are due out on Thursday. February retail sales, another gauge of economic activity, will also publish on Thursday morning.

February inflation came in slightly hotter than expected this week, with consumer prices rising 3.2% year-per-year.

Yet, that didn't do much to alter the outlook for rate cuts. Markets are pricing in a 42% chance the Fed could lower rates by 100 basis points or more by December, according to the CME FedWatch tool, and see the first rate cut still coming in June even as inflation remains above the Fed's 2% target.

"The long term disinflation trajectory has probably not changed but the path to the Fed's 2% target will be choppy.  Expect to see markets struggle with what this means for Fed policy," Jeffrey Roach, the chief economist of LPL Financial said in a statement yesterday.

Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Wednesday: 

Here's what else is going on today: 

In commodities, bonds, and crypto: 

  • West Texas Intermediate crude jumped 2.4% higher to $79.43. Brent crude, the international benchmark, rose 2.1% to $83.66 a barrel.

  • Gold rose 0.21% to $2,163.67 per ounce.

  • The 10-year Treasury yield ticked higher to 4.172%.

  • Bitcoin increased by 0.59% to $72,713.

Read the original article on Business Insider