- U.S. equities were higher at midday on Wednesday, Sept. 13, 2023 after hotter-than-expected inflation figures as gas prices surged failed to change traders’ expectations that the Fed would pause rate hikes.
- Moderna reported positive results from its new flu vaccine, and shares rose.
- Airline stocks sank after American and Spirit cut their guidance because of higher costs.
U.S. equities rose at midday after hotter-than-expected inflation figures as gas prices surged failed to change traders’ expectations that the Federal Reserve will not raise interest rates next week, pricing in an over 95% rates would stay stable, according to CME Group’s FedWatch Tool. The Dow, S&P 500, and Nasdaq were all in the green.
Moderna (MRNA) shares jumped as the vaccine maker reported a successful late-stage trial of its new flu shot, while shares of WestRock (WRK) gained for a second-straight day after Irish rival Smurfit Kappa purchased the paper and packaging firm for $11 billion.
Ford (F) shares increased as the automaker announced it was boosting production of its hybrid F-150 pickup and will offer it at the same price as a gas-powered model with electric vehicle (EV) sales lagging. Shares of Citigroup (C) were up as the bank announced a shakeup of its operations and management.
Airline stocks slid after American Airlines (AAL) and Spirit Airlines (SAVE) reduced their current quarter guidance because of higher costs. T. Rowe Price Group (TROW) shares also dropped as the financial firm’s assets under management fell more than 2% in August.
Oil and gold futures were little changed. The yield on the 10-year Treasury note was up. The U.S. dollar advanced versus the euro and yen, but fell to the pound. Most major cryptocurrencies traded higher.