The broader markets moved higher following a decades-high but widely expected inflation report on Wednesday. The Dow Jones Industrial Average was up 0.11%, the S&P 500 rose 0.28%, and Nasdaq gained 0.23%.
The US consumer price index increased by 0.6% MoM, and 7% YoY, which was in expectation. As investors are digesting the hot inflation data, the US stocks continue the rebounding pace as the tech sector is clawing back following the cooling down bond yields this week. The 10-year US Treasury yield traded lower at 1.736% after it topped 1.8% to a 2-month high on Monday.
The Fed Chairman Powell remarked on the tightening monetary cycle measures at the Senate Finance Committee hearing on Tuesday. But he didn't specify when to start the first interest hike or unwind the Fed's balance sheet. The Tech stocks rebounded sharply on the news the previous trading day as markets had priced in with a sharp selloff in tech shares in the first week of January.
Investors will be closely watching the ongoing inflation moves and more clear guidance from the Fed. Risks will remain for the rest of the month as the recent rebounding might be just short-lived.
The crude oil price continued to rally for the second straight day. The WTI futures rose 1.8%, to $82. 66 per barrel. The gold future added $8.5, to $1,826.9 per ounce.