U.S. stocks wavered during midday trading, paring gains from an early Tuesday explosion upward that was sparked by fresh inflation data showing prices rose less than expected last month.
The S&P 500 (^GSPC) advanced by 0.3%. The Dow Jones Industrial Average (^DJI) slipped 0.1% during midday trading, giving up a 2% gain from earlier in the session. The technology-heavy Nasdaq Composite (^IXIC) added 0.2%.
The jump in stocks comes after data from the BLS showed prices in November rose 0.1% over the prior month and 7.1% over the prior year. Tuesday’s data was seen by investors as potentially encouraging for the Federal Reserve to ease off its aggressive rate hikes early next year.
“While this is the second consecutive month of softer-than-expected inflation, we don’t think this will change anything at tomorrow’s Fed meeting. We still expect a 50-basis-point hike, but what matters is guidance,” Gina Bolvin, President, Bolvin Wealth Management Group, wrote in a statement following…