Stocks are rising after inflation report; Fed meeting in focus

Investing.com -- U.S. stocks were rising after the annualized core inflation reading for August met expectations, stoking hopes the Federal Reserve is reaching the end of its interest rate increases.

At 11:19 ET (15:19 GMT), the Dow Jones Industrial Average was up 83 points or 0.2% while the S&P 500 was up 0.3% and the NASDAQ Composite was up 0.4%.

The three major Wall Street indices closed lower Tuesday, weighed by sharp losses from Oracle (NYSE:ORCL), with the computer software company notching its worst day in more than 20 years on the back of disappointing revenue guidance.

The tech-heavy Nasdaq Composite dropped 1%, while the blue-chip Dow Jones Industrial Average ended 0.1% lower and the broad-based S&P 500 fell 0.6%.

U.S. CPI data hits ahead of Fed meeting 

This focus Wednesday is the U.S. consumer price index, as investors try to gauge the likely path of U.S. interest rates over the rest of the year.

The annual headline inflation in the world's largest economy rose 3.7%, slightly higher than the expected 3.6% during the month of August, as energy prices soared, but the core reading, which strips out volatile items like food and fuel, rose 4.3%, as expected. 

Recent remarks from Fed officials suggest another pause is the most likely outcome of next week's rate-setting meeting, but uncertainty still remains over what they may choose to do later on in 2023.

Apple to remain in spotlight after iPhone reveal

In the corporate sector, restaurant and retail chain Cracker Barrel (NASDAQ:CBRL) beat profit expectations. Shares rose 2.8%.

Moderna (NASDAQ:MRNA) and Pfizer (NYSE:PFE) are likely to benefit from the Centers for Disease Control and Prevention’s recommendation that all Americans ages six months and older receive updated Covid vaccines from the two drugmakers.

Apple (NASDAQ:AAPL) will also remain in focus after the tech giant revealed four new iPhone models at its annual hardware refresher on Tuesday, but refrained from launching major updates to the flagship device's design or software. Shares dipped 0.7%.

Crude gains ahead of EIA inventory report

Oil prices edged higher Wednesday, near their highest levels since November 2022, boosted by ongoing supply concerns as well as a bullish demand outlook from the OPEC monthly report.

The Organization of the Petroleum Exporting Countries, in a report released on Tuesday, said that oil markets will tighten further this year amid robust demand and lower production.

Additionally, the Energy Information Administration said global oil inventories were expected to fall by almost a half million barrels per day in the second half of 2023.

This overshadowed data from the American Petroleum Institute showing that U.S. crude inventories rose 1.2 million barrels last week, with the official report from the Energy Information Administration due later in the session.

(Peter Nurse and Oliver Gray contributed to this item.)