US stocks hover near record highs as investors brace for inflation data

This post was originally published on this site
  • US stocks flirted with record highs Wednesday as investors awaited key inflation data out tomorrow.
  • Some investors worry that overheating inflation may nudge the Federal Reserve into rolling back its ultra-easy monetary policy.
  • Bitcoin recovered from its previous day’s 10% slump by climbing back above $35,000.
  • Sign up here our daily newsletter, 10 Things Before the Opening Bell.

US stocks flirted with record highs Wednesday as investors awaited key inflation data out tomorrow.

The broader market seems to be in a “holding pattern” as investors wait for Thursday’s inflation report, said Craig Johnson, Piper Sandler chief market technician. Economists expect the US consumer price index to rise 4.7% year-on-year. Some investors worry that overheating inflation may nudge the Federal Reserve into rolling back its ultra-easy monetary policy.

Here’s where US indexes stood at the 9:30 a.m. ET open on Wednesday:

Reddit traders are driving rallies in a string of new meme stocks this week, including Wendy’s, Clean Energy Fuels, and ContextLogic, among others.

Bitcoin recovered from its previous day’s 10% slump by climbing 6.7% to $35,046. The digital asset was trading around $31,036 on Tuesday, partly prompted by news of US authorities’ ability to use a private key to retrieve some of the Colonial Pipeline ransom.

“This current market pause is not unexpected,” said Paolo Ardoino, CTO of crypto exchange Bitfinex. “Everyone needs time to assess and digest what the community has built. We’re waiting for a new momentum to gather as we continue to build upon the foundations created by some of the greatest minds in fintech. I’m still extremely bullish in the long term about bitcoin and the long-term fundamentals and use cases of the technology.”

Meanwhile, El Salvador’s congress approved a law making bitcoin legal tender. This gives the cryptocurrency the same status as the US dollar in the country.

West Texas Intermediate crude rose as much as 0.5%, to $70.40 per barrel. Brent crude, oil’s international benchmark, gained 0.55%, to $72.62 per barrel.

Gold fell 0.1% to $1,892 per ounce.