Wall Street Up Slightly After Worst Trading Day Since 2020

The stock exchanges in New York showed small gains on Wednesday after the price boom a day earlier. Wall Street experienced its worst trading day since June 2020 on Tuesday due to a disappointing inflation rate in the United States.

Consumer prices in the world’s largest economy rose faster than expected in August, shattering hopes of milder rate hikes by the Federal Reserve.

More information about inflation was also released on Wednesday. For example, it turned out that the prices charged by American manufacturers for their products fell slightly last month compared to July due to lower fuel costs. But without including sharply fluctuating food and fuel prices, producer prices rose.

Shortly after opening, the Dow Jones index was slightly higher at 31,121 points. The broad S&P 500 rose 0.2 percent to 3,938 points. The Nasdaq rose a fraction to 11,633 points. The tech gauge plunged more than 5 percent on Tuesday. Higher interest rates are generally bad news for stocks and high-growth technology companies.

The prices of large tech companies such as Apple, Amazon, Facebook mother Meta and Microsoft were mixed after drops of up to 9 percent a day earlier. Supermarket chains Walmart and Target rose 0.2 and 0.8 percent thanks to buying recommendations from analysts at KeyBanc.

Starbucks climbed 4.7 percent. The coffee chain raised its expectations. The company forecasts double-digit revenue growth and earnings per share over the next three years. Steel manufacturer Nucor fell 6 percent after disappointing expectations for the current quarter. Media and telecom group Comcast gained 1.9 percent after announcing it would buy back even more shares.

Google parent Alphabet lost 0.2 percent. According to a European judge, Google has rightly been fined billions by the European Commission. The judge ruled that the tech company was guilty of pushing competitors away from Android phones and other devices. The fine is slightly reduced to more than 4.1 billion euros.

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