© Reuters
Investing.com — U.S. stocks struggled for direction Wednesday, as investors awaited the Federal Reserve decision and fresh projections about the path of interest rates amid ongoing hopes for rate cuts early next year.
By 13:30 ET (18:30 GMT), the was up 2 points, while the was flat, and fell 0.1%.
Fresh signs of slowing inflation; All eyes on Fed decision
November were unexpectedly unchanged in November as a decline in the cost of energy products more than offset higher food prices, confirming that the country remained on a disinflationary path.
Signs of ongoing disinflation come just a day after the November consumer prices continued to show slowing price pressures.
The data comes on heels of the ‘s interest rate decision, with the central bank expected to keep rates steady for a third-straight meeting.
Comments from Fed Chair will garner most of the attention.
Powell has previously stressed that any decisions will be taken “carefully,” particularly as the Fed tries to assess if its recent campaign of aggressive policy tightening has worked to cool inflation.
Market expectations are growing that the Fed may cut rates as soon as next spring, according to Investing.com’s , and Powell may choose to push back against this narrative.
Pfizer slumps after sales forecast disappointment
In corporate news, Pfizer (NYSE:) stock slumped over 7% after the drugmaker forecast 2024 sales substantially below previous expectations due mostly to declining demand for COVID vaccines and treatment.
Southwest Airlines (NYSE:) stock fell over 6% after the low cost carrier raised its forecast for fourth-quarter fuel costs, while Tesla (NASDAQ:) stock dropped 2% after the electric vehicle manufacturer announced it was recalling just over two million vehicles in the United States fitted with its Autopilot advanced driver-assistance system to install new safeguards.
Official U.S. inventories fall more than expected
edged higher Wednesday, after data showed U.S crude inventories fell by much more than expected last week.
The reported Wednesday that U.S. oil inventories fell by 4.3M barrels in the week ended Dec. 8, compared with expectations for a decline of 650,000 barrels.
But the potential draw arrived on the heels of several consecutive weeks of strong builds, keeping upside momentum in check.
(Peter Nurse contributed to this report.)
