- 'Imperfect' PSG fighting on all fronts - Luis Enrique
- Struggling Pakistan look to thwart adaptable England
- Child 'trampled to death' in asylum seekers' Channel crossing: minister
- Gauff fights back to set up Beijing final against Muchova
- Guardiola claims Premier League won't delay season for Man City
- Israel to mark October 7 attack as Gaza war spreads
- Gauff fights back to reach China Open final
- Recovering Stokes ruled out of first Pakistan Test
- Hezbollah battles troops on border as Israel pounds Lebanon
- Alcaraz, Sinner breeze into third round of Shanghai Masters
- Bagnaia wins Japan MotoGP sprint to cut Martin's lead
- Alcaraz breezes into third round of Shanghai Masters
- Gaza cultural heritage brought to light in Geneva
- 'Bullet for democracy': Trump returns to site of rally shooting
- Italy targets climate activists in 'anti-Gandhi' demo clampdown
- South Korean cult-horror series 'Hellbound' returns at BIFF
- Nepalis fear more floods as climate change melts glaciers
- Honduras arrests environmentalist's alleged murderer
- Padres pitcher Musgrove needs elbow surgery
- Supreme Court lets stand rules to curb mercury, methane emissions
- Boston beat Denver in NBA exhibition season opener, but Jokic says omens are good
- Chagos diaspora angry at lack of input on islands' fate
- Biden says 'not confident' of peaceful US election
- US trade chief defends tariff hikes when paired with investment
- Lukaku stars as Napoli beat Como to hold Serie A top spot
- Ohtani set for MLB playoff debut as Dodgers face Padres
- Pogba's drug ban cut to 18 months from four years
- Devine leads New Zealand to big win over India in Women's T20 World Cup
- Bosnia floods kill 16 people
- EU court blocks French ban on vegetable 'steak' labelling
- Prosecutors seek dismissal of rape charges against French rugby players
- Meta AI turns pictures into videos with sound
- Bolivia's Morales says claims he raped a minor are a 'lie'
- MLB Reds hire two-time champion Francona as manager
- Daniel Maldini receives first Italy call-up for Nations League
- US dockworkers return to ports after three-day strike
- Ancelotti points finger at Madrid's 'lack of intensity'
- Haiti reeling after 70 killed in gang attack
- Five Czech kids in hospital over TikTok 'piercing challenge'
- What happens next in Iran-Israel conflict?
- Country star Garth Brooks denies rape accusations
- Stubbs hits maiden century as South Africa make 343-4 against Ireland
- DR Congo to begin mpox vaccination campaign Saturday in east
- Odegaard injury has forced Arsenal to be 'different', says Arteta
- Ratcliffe refuses to guarantee Ten Hag's Man Utd future
- Meta must limit data use for targeted ads: EU court
- Mauritius to hold legislative election on November 10
- Britain qualify for America's Cup final after 60-year wait
- IMF asks Sri Lanka to protect hard-won gains
- Morata returns to Spain Nations League squad after injury
US stocks rebound as market eyes Fed rate cut after inflation data
Semiconductor stocks were among the strongest performers Wednesday as US stocks staged a rebound to finish higher following mixed inflation data.
Wall Street indices initially fell following monthly consumer price index data, which kept the Federal Reserve on track to cut interest rates but weakened the case for a larger reduction.
The CPI rose 2.5 percent in August from a year ago, down from a 2.9 percent increase in July. It was the lowest annual figure since February 2021.
However, a measure of inflation that strips out volatile food and energy costs rose by a larger-than-expected 0.3 percent from a month earlier.
While investors widely expect the Federal Reserve to cut interest rates later this month, markets have been unsure of how big the cut will be.
Following Wednesday's inflation data, futures markets showed a jump in expectations for a smaller 0.25 percent cut instead of a half-point cut.
As the day progressed, investors realized the initial sell-off was an overreaction to the CPI data and that a Fed rate cut will still be positive for the stock market, said Art Hogan, chief market strategist at B. Riley Wealth.
All three major indices ended higher, led by the Nasdaq, which gained 2.2 percent.
Semiconductor companies -- which have been under pressure in recent weeks -- led Wednesday's gains, with artificial intelligence star Nvidia rising more than eight percent and Micron and Intel also notching big gains.
But XTB brokerage research director Kathleen Brooks said Wednesday's US inflation data "complicates the outlook for rate cuts further in the future".
While the data supports the Fed beginning to cut interest rates, "does it justify the 10 rate cuts that are currently priced in by the Fed Funds market over the next nine months?"
Oil prices recovered in part after a hammering on Tuesday, when Brent North Sea crude slid below $70 per barrel for the first time since December 2021 on concerns about the global outlook.
Analysts pointed to offshore platform production suspensions in the Gulf of Mexico due to Hurricane Francine.
Paris and Frankfurt stocks diverged ahead of an expected interest rate cut on Thursday, with Frankfurt boosted by a more than 16 percent surge in Commerzbank shares after Italian rival UniCredit announced it had acquired a nine percent stake.
The European Central Bank is expected to cut interest rates again this week as inflation drifts back down towards its two-percent target, but policymakers will likely stay tight-lipped on future moves.
Sentiment in London was dented by official data showing Britain's economy stalled in July.
Asia's main equity indices closed lower with a strong yen weighing on Tokyo's market, while Chinese stocks were knocked by concerns over China's struggling economy, analysts said.
- Key figures around 2050 GMT -
New York - Dow: UP 0.3 percent at 40,861.71 (close)
New York - S&P 500: UP 1.1 percent at 5,554.13 (close)
New York - Nasdaq Composite: UP 2.2 percent at 17,395.53 (close)
London - FTSE 100: DOWN 0.2 percent at 8,193.94 (close)
Paris - CAC 40: DOWN 0.1 percent at 7,396.83 (close)
Frankfurt - DAX: UP 0.4 percent at 18,330.27 (close)
Tokyo - Nikkei 225: DOWN 1.5 percent at 35,619.77 (close)
Hong Kong - Hang Seng Index: DOWN 0.7 percent at 17,108.71 (close)
Shanghai - Composite: DOWN 0.8 percent at 2,721.80 (close)
Dollar/yen: DOWN at 142.38 yen from 142.44 yen on Tuesday
Euro/dollar: DOWN at $1.1018 from $1.1020
Pound/dollar: DOWN at $1.3046 from $1.3080
Euro/pound: UP at 84.43 pence from 84.24 pence
Brent North Sea Crude: UP 2.1 percent at $70.61 per barrel
West Texas Intermediate: UP 2.4 percent at $67.31 per barrel
burs-jmb/md
O.Salvador--PC