© Reuters.
By Liz Moyer
Investing.com -- U.S. stocks were rising after inflation data met expectations, fueling hopes for a smaller interest rate increase by the Federal Reserve next week.
At 14:13 ET (18:13 GMT), the Dow Jones Industrial Average was up 83 points or 0.3%, while the S&P 500 was up 0.8% and the NASDAQ Composite was up 1.3%.
The Bureau of Labor Statistics reported a 0.4% rise in the consumer price index in February from the previous month, cooling slightly from January’s reading. On an annual basis, inflation rose 6%, also cooling from the prior reading. Core prices, which exclude food and fuel, rose 0.5% from the prior month, slightly more than expected.
Most futures traders are expecting a quarter of a point rate hike next week, though 26% of traders are betting on the Fed to pause rate hikes, according to CME’s FedWatch tool.
Also fueling hopes for a less aggressive Fed: the collapse of Silicon Valley Bank (NASDAQ:SIVB) over the weekend, which has rippled through bank stocks on fears of a wider contagion. Regulators have stepped in to backstop depositors of SVB and Signature Bank (NASDAQ:SBNY), which also shut down.
Shares of large regional banks sank on Monday but were rebounding on Tuesday. KeyCorp (NYSE:KEY) was up 10%. Comerica Inc (NYSE:CMA) was up 3%, while PacWest Bancorp (NASDAQ:PACW) was up 38%. First Republic Bank (NYSE:FRC) was up 29%.
Stocks gave back some of their intraday gains after reports a Russian fighter jet struck the propeller of an American surveillance drone over the Black Sea, causing U.S. forces to down the drone in international waters.
Meta Platforms Inc (NASDAQ:META) is cutting another 10,000 workers, incurring charges of as much as $5 billion, and warned about the possibility of economic uncertainty sticking around. Shares rose 5.8%.
Shares of AMC Entertainment Holdings Inc (NYSE:AMC) sank 19% after shareholders of the largest movie theater chain voted to approve a reverse stock split and the conversion of APE equity units into common shares. The matter is also before a Delaware Chancery Court judge.
