U.S. Stocks Mostly Higher As Inflation Data Eases Rate Hike Concerns

(RTTNews) - Stocks have moved mostly higher during trading on Wednesday, with the major averages all moving to the upside after ending yesterday's choppy trading session modestly lower. The tech-heavy Nasdaq has helped lead the charge.

Currently, the Nasdaq is up 254.72 points or 1 percent at 27,052.27 and the S&P 500 is up 44.08 points or 0.6 percent at 7,714.92. The narrower Dow is posting a more modest gain, up 42.07 points or 0.1 percent at 51,391.99.

The strength on Wall Street comes following the release of the Federal Reserve's preferred readings on consumer price inflation.

The report from the Commerce Department showed consumer prices rose by less than expected on a monthly basis in August, while the annual rate of price growth also came in below estimates.

While the annual rate of consumer price growth remains well above the Fed's 2 percent target, traders may feel the data reduces the likelihood the central bank will raise interest rates next month.

According to CME Group's FedWatch Tool, the chances the Fed will raise rates by a quarter point have fallen to 37.1 percent from 50.9 percent on Tuesday.

Meanwhile, a separate report released by payroll processor ADP showed private sector employment in the U.S. jumped by more than expected in the month of September.

ADP said private sector employment shot up by 90,000 jobs in September after rising by a downwardly revised 36,000 jobs in August.

Economists had expected private sector employment to increase by 70,000 jobs compared to the addition of 38,000 jobs originally reported for the previous month.

Sector News

Despite the advance by the broader markets, most of the major sectors are showing only modest moves on the day.

Software stocks have shown a notable move to the upside, however, with the Dow Jones U.S. Software Index climbing by 1.6 percent.

Computer hardware and oil producer stocks are also seeing some strength on the day, while airline stocks have moved to the downside.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan's Nikkei 225 Index jumped by 1.9 percent, while China's Shanghai Composite Index rose by 0.3 percent.

Meanwhile, the major European markets have moved to the downside on the day. While the U.K.'s FTSE 100 Index is down by 0.1 percent, the German DAX Index is down by 0.6 percent and the French CAC 40 Index is down by 0.8 percent.

In the bond market, treasuries have once again moved lower over the course of the session after seeing early strength. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 1.8 basis points at 5.267 percent.