US stocks rise as traders assess new inflation data and await Fed minutes

• US stocks rose on Wednesday as traders took in the latest inflation data.
• Producer prices rose 0.5% last month, slightly higher than the expected 0.3% increase.

US stocks jumped on Wednesday as traders cheered the latest inflation data and waited for the release of the Fed minutes, which will give markets more guidance on what central bankers are thinking for their next interest rate move.

All three benchmark indexes moved higher on Wednesday. Meanwhile, the yield on the 10-year Treasury continued to ease slightly, trading around 4.5%.

The Producer Price Index rose a seasonally adjusted 0.5% last month, the Bureau of Labor Statistics reported. That's slightly above the expected 0.3% increase, but reflects a slower pace of growth compared to August, when producer prices accelerated 0.7%.

Meanwhile, the September Consumer Price Index report is set to roll out tomorrow morning, another inflation data point that could move markets.

Investors are also waiting on the release of the Fed minutes from central bankers' September policy meeting later this afternoon. That will give markets more insight into what Fed officials are thinking about the path of inflation, and what their next interest rate move could look like in November.

"The Fed's Minutes may sound 'hawkish' about where to fix where to fix the neutral real policy rate in the US, and that may reverse this morning's bond rally. But tomorrow's September CPI report may be on the low side of 0.3%, and that could take yields down again," Macquarie strategist Thierry Wizman said in a note.

Investors are largely expecting the Fed to keep interest rates unchanged, pricing in a 71% chance that rates will stay between the 5.25%-5.5%, according to the CME FedWatch tool. Rates could stay at that level well into 2024, with just a 44% chance rates could be lower by May of next year.

Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Wednesday:

• S&P 500: 4,377.14, up 0.43%

• Dow Jones Industrial Average: 33,845.88, up 0.34% (+113.91 points)

• Nasdaq Composite: 13,657.95, 0.71%

Here's what else is going on today:

• Birkenstock will be valued at just under $9 billion as the shoemaker gets ready to make its stock market debut.
• The IMF just raised its economic outlook for Russia and Ukraine, despite the ongoing war raging in both countries.
• Charlie Munger trashed crypto, warned of AI being overhyped, and talked poker and donuts in a speech.

In commodities, bonds, and crypto:

• West Texas Intermediate crude oil slipped 1.27% to $84.86 a barrel. Brent crude, the international benchmark, fell 1% to $86.78 a barrel.
• Gold rose 0.5% to $1,884.80 per ounce.
• The 10-year Treasury yield slipped six basis-points to 4.595%.
• Bitcoin fell 1.18% to $27,130.45.