Stocks slide as CPI report tees up small Fed cut
Published On Sep 11, 2024, 10:26 AM
US stocks gained on Wednesday after a mixed inflation report showed consumer prices rose at a slower rate in August, easing some concerns regarding the Federal Reserve's interest rate policies. The S&P 500 rose over 1%, with the tech sector leading the way due to a significant rally in Nvidia's stock after positive comments from its CEO at a Goldman Sachs conference. On the other hand, GameStop's stock plunged nearly 12% following disappointing earnings and news of a new stock offering. The market expectations for a 0.5% interest rate cut by the Federal Reserve diminished considerably after the inflation report. The article indicates that a smaller rate cut is now more likely, potentially boosting stock prices further in response to economic growth signs.