Stock Market Today: S&P 500 ekes gain as yields rebound to cool recent rally

The S&P500 eked out a gain Wednesday, as Treasury yields rebounded from session lows despite in-line inflation data teeing up a  December rate cut. 

At 4.00 p.m. ET (18:02 GMT), the Dow Jones Industrial Average rose 47 points, or 0.1%, the S&P 500 index was up 0.02%, while the NASDAQ Composite fell 0.2%.  US CPI data meet expectations

Data released earlier Wednesday showed that headline consumer prices rose 2.6% last month on an annualized basis, compared to 2.4% in September. Month-on-month, the figure came in at 0.2%, matching September's pace.

The "core" reading, stripping out more volatile items like food and fuel, rose 3.3% year-on-year and 0.3% on a monthly basis, in line with September.

These figures were all in line with expectations and soothed concerns after Minneapolis Fed President Neel Kashkari had warned on Tuesday that any surprises in inflation could see the Fed keep rates steady in December.

"This release supports our call for a 25 bps cut from the FOMC in December," Macquarie said in a Wednesday note.

Bets on a December rate cut jumped to 90% following the data, up from 60% the prior day. 

Still, Treasury yields rebounded off session lows to keep a lid on upside in stocks. Rivian soars on increased investment 

Rivian Automotive (NASDAQ:RIVN ) stock surged 14% after the electric vehicle maker and Volkswagen (ETR:VOWG ) announced an increased investment by the German automaker in a joint venture.

VW's plans to invest up to $5.8 billion in Rivian and the joint venture by 2027 would provide the funding that the electric vehicle needs for its R2 model ramp-up and the GA plant's R2/R3 midsize platform, Wedbush said in a Wednesday note. Spotify, Cava shine on earnings stage, but Skyworks falters

Spotify Technology (NYSE:SPOT ) rose 11% after it clocked strong subscriber growth for the September quarter while issuing a solid forecast for the year.

CAVA Group (NYSE:CAVA ) soared nearly 2% after the Mediterranean fast-casual restaurant chain popped 14% after reporting a top- and bottom-line beat in the third quarter. 

Skyworks Solutions (NASDAQ:SWKS ) fell over 4% after the semiconductor company's forward guidance for the first quarter came in lighter than expectations.  Bitcoin gives up gains after topping $93K

Bitcoin (BitfinexUSD ) fell 1% to $88,621 in recent trading, giving up gains after topping $93,00 for the first time ever. The popular crypto is riding growing bets that a second Donald Trump administration would be favorable for the bitcoin.   

(Peter Nurse, Ambar Warrick contributed to this article.)

Source: Investing.com