US stocks traded relatively flat on Wednesday as traders looked ahead to fresh inflation data set to be released on Thursday. The producer price index, a measure of wholesale inflation, could help determine the pace of interest rate cuts later in 2024.
Investors are eagerly awaiting the release of the producer price index, along with initial jobless claims and February retail sales data. The retail sales data is expected to show a 0.8% increase month-over-month, following a decline in January.
February consumer inflation data came in slightly higher than expected, with consumer prices rising 3.1% last month. Some analysts believe that disinflation still has further to go despite signs of a robust economy.
Market participants are also anticipating potential rate cuts from the Federal Reserve later this year, with a 43% chance of a 100 basis point cut by December, according to the CME FedWatch tool.
In commodities, West Texas Intermediate crude rose 2.8% to $79.87 a barrel, while Brent crude increased 2.6% to $84.18 a barrel. Gold ticked higher by 0.2% to $2,163.40 per ounce, and the 10-year Treasury yield rose three basis points to 4.19%. Bitcoin also saw a 2.3% jump to $73,220.
Overall, US stocks ended the day mixed, with major benchmark indexes mostly flat as investors await key economic data releases.
