US benchmark equity indexes experienced an upturn on Wednesday, following the release of official data indicating that consumer inflation in October aligned with Wall Street's expectations. The US consumer price index rose 0.2% last month, consistent with the increases seen from July through September, as reported by the Bureau of Labor Statistics.
Year-on-year, inflation climbed to 2.6% from September's 2.4% pace. TD Economics commented, "Progress on the inflation front has slowed to a snail's pace in recent months as services inflation is looking increasingly sticky, while much of the disinflationary pressure from falling goods prices is now in the rear-view mirror.
All of this suggests that the last leg lower on returning inflation to the (Federal Reserve's) 2% target is going to occur much more gradually." On Wednesday, the chances of policymakers reducing their benchmark lending rate by 25 basis points next month soared to 82%, a notable increase from 59% the previous day, as indicated by the CME FedWatch tool.
The remaining possibilities imply that interest rates could remain steady. In commodities, December West Texas Intermediate crude oil settled down $0.03 at $68.09 per barrel, whereas January Brent crude, the global standard, was reported up $0.09, reaching $71.98. In corporate news, Southwest Airlines ($LUV) CEO Bob Jordan shared with Bloomberg that he "wouldn't be surprised" if Boeing ($BA) struggles to fulfill delivery commitments next year.
Following this statement, Southwest Airlines' shares saw a 1.2% increase, while Boeing's shares fell by 3.6%. Meanwhile, Rivian Automotive ($RIVN) experienced a significant surge, with shares climbing 14% after Germany's Volkswagen raised its investment in a joint venture with the Irvine, California-based automaker to $5.8 billion, up from $5 billion..