US stocks opened higher on Wednesday as Wall Street weighed on key inflation and big bank earnings earlier this week.
The S&P 500 (^GSPC) rose 0.5%, while the Dow Jones Industrial Average (^DJI) added 130 points, or 0.4%. The Nasdaq High-Tech Composite Index (^IXIC) also rose about 0.4%.
US Treasury yields rose from the previous session, with the 10-year note falling below 3.6%. The US dollar index also fell.
Wells Fargo (WFC) was among the companies to trade early after the mega-bank announced on Tuesday night that it was ending its home lending business. The move by Wells Fargo, a former major mortgage lender, comes amid a slowing housing market as rising interest rates slowed home purchases and financing deals. Stock prices were little changed.
Shares of Parity (PRTY) jumped 118% on Tuesday after Bloomberg News reported the company was seeking funding for Chapter 11 bankruptcy, citing people familiar with the arrangement.
Retailer Bed Bath & Beyond (BBBY) also rebounded a week after the company announced it was considering filing for bankruptcy due to financial difficulties. Mem stock is up 25% after rising more than 50% in the past two sessions.
Shares of Coinbase (COIN) fell more than 5% after Bank of America downgraded its rating from neutral to low on Tuesday after announcing it would cut about 1,000 jobs as part of a restructuring plan.
© Provided by Yahoo Finance America . A trader works at the New York Stock Exchange (NYSE) in New York, U.S., January 5, 2023. REUTERS/Andrew Kelly
The pace of the consumer price index (CPI) for December will be higher on Thursday morning. Economists expect the core CPI to rise 6.5% from last month, according to the Bloomberg consensus estimate. If implemented, the reading would show another slight difference from November's 7.1% increase.
The report could change bets on whether the Fed will raise interest rates by 0.25% or 0.50% by the end of its next meeting on Feb. 1, depending on how many rate hikes take place. will be made at future meetings.
The latest economic projections from the Federal Reserve's December meeting show authorities are expected to raise the overnight lending rate to 5.1% in 2023.
Several Fed officials, including San Francisco Fed President Mary Daley and Atlanta Fed President Rafael Bostick, confirmed this week that rates could exceed 5%. CEO Jamie Dimon (JPM) predicted rates could rise by as much as 6% in an interview with Fox Business Network on Tuesday.
Still, DataTrek's Nicholas Collas calls it a "bullish savage" on the fed funds outlook after 2023. According to CME's FedWatch tool, the 4.75% higher odds rose 13.7 percentage points.
“Markets are casually and decisively ignoring Fed rate forecasts less than a month after they were released,” Colla wrote in a note. Instead, futures and the stock market expect the Fed to lock in rates 25 to 50 basis points from their year-end level.
–
Alexandra Semenova is a Yahoo Finance journalist. Follow her on Twitter @alexandraandnyc .
Click here to see the latest stock price trends on the Yahoo Finance platform
Click here for the latest stock market news and in-depth analysis, including the events moving stocks.
Read the latest financial and business news from Yahoo Finance
Download the Yahoo Finance app for Apple or Android devices
Follow Yahoo Finance on Twitter , Facebook , Instagram , Flipboard , LinkedIn and YouTube
