On Wednesday, US stocks open little higher a day after the inflation report for August was released. At 9:46 ET (13:46 GMT), the Dow Jones Industrial Average climbed 123 points, , while the S&P 500 ascended 0.5 per cent. NASDAQ Composite climbed 0.5 per cent.

Tuesday’s sharp drop in stocks was the worst since June 2020. Investors had hoped that a cooler inflation report could encourage the Federal Reserve to act less aggressively on interest rates.

Now, it is expected that the central bank may raise its benchmark rate by 0.75 percentage points in the next meeting.
While gasoline prices have tumbled from their peak in June, food prices continue to rise, squeezing household budgets. Also, the producer price index fell 0.1 per cent in August from the month before, meeting expectations.

Technology companies’ stocks sold off sharply on Tuesday and continued to drop on Wednesday. Meta Platforms Inc (NASDAQ:META) is down 1.4 per cent after plunging more than 9 per cent a day earlier.