[1/3]Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., September 11, 2023. REUTERS/Brendan McDermid/File Photo Acquire Licensing Rights
NEW YORK, Sept 13 (Reuters) – Wall Street closed mixed on Wednesday, and U.S. Treasuries oscillated within a tight range after data showed underlying inflation remained on its slow, downward trajectory, cementing the likelihood that the Federal Reserve will let interest rates stand for now.
The S&P 500 gained modestly and interest-rate sensitive mega caps, led by Amazon.com (AMZN.O) and Microsoft Corp (MSFT.O), gave the tech-heavy Nasdaq the edge.
The blue-chip Dow Jones Industrial Average ended modestly lower.
U.S. consumer price (CPI) data showed prices heated up in August at their fastest pace in 14 months due to rising energy prices, but the “core” measure, which excludes volatile food and energy items, remained on its meandering path down toward the Federal Reserve’s average 2% annual inflation target.
“Since markets were weak the last few days, maybe people were fearing more core inflation than we saw,” said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. The report “confirms the idea of the Fed waiting to see what further data show before a possibly hiking rates in November.”
Tuz noted that “CPI was slightly positive on a core basis, but surging gasoline prices affect retail sales.” He explained that “The extra $20 you spend filling your tank is $20 less you spend on…
