S&P 500 closes higher ahead of new inflation data by Investing.com

Investing.com — The S&P 500 ended higher on Wednesday as investors continued to digest interest rate cues from the Federal Reserve, a day ahead of new inflation data and the Tesla robotaxi event.

At 4:00 pm ET (2000 GMT), it gained 431 points, or 1 percent, gained 0.7 percent and added 0.5 percent.

Fed minutes show most members supported jumbo cut; inflation data

While a “substantial majority” of Federal Reserve policymakers supported the central bank’s jumbo rate cut in September, there were signs that some members preferred to start the rate-cutting cycle with a more modest reduction on concerns about the strength of the economy, according to the minutes of the September 17-18 Federal Reserve meeting, published on Wednesday.

The minutes were somewhat stale as data from the September meeting pointed to stronger economic growth, dampening investors’ bets for another round of jumbo rate cuts.

Strong payrolls data released last week raised doubts about how much momentum the Fed has to keep interest rate cuts on pace. Traders were seen pricing in an 81.1% chance of a 25-basis-point discount in November, with 18.9% chance odds will remain unchanged, according to .

The Fed cut rates by 50 bps in September and future cuts signaled will still depend on inflation and the labor market.

On the economic level, for the month of September, on Thursday, it will provide investors with new indications on the path of monetary policy. There are growing concerns that the last mile to get inflation to 2% is likely to be more difficult than initially expected due to the stronger labor market.

Google (NASDAQ: ) Faces Possible Breakup; Tesla robotaxi eye event

Alphabet (NASDAQ: ) fell 2% on news that the US Department of Justice is considering possible sanctions against the owner of Google following a landmark antitrust case that found the group guilty of abusing its dominant market position.

The DOJ is “considering behavioral and structural remedies” that would prevent Google from using products like its web browser, app store or operating system to give its search business an advantage over its competitors, according to a federal court filing from Tuesday.

“For more than a decade, Google has controlled the most popular distribution channels, leaving rivals with little or no incentive to compete for users,” the DOJ added.

Reddit Inc (NYSE: ) closed marginally higher after Jefferies initiated coverage on the stock with a buy rating on expectations that strong user growth could boost earnings.

Boeing Co (NYSE: ) fell more than 3% as the planemaker faces an ongoing strike by workers at the International Automobile Association union after withdrawing its contract offer to the union.

Arcadiu Litiu (NYSE: ) shares rose 31% after global miner Rio Tinto (NYSE: ) agreed to acquire its U.S. partner in a deal worth $6.7 billion, according to a statement on Wednesday.

Meanwhile, Tesla Inc (NASDAQ: ) fell 1% as the electric vehicle maker prepares to kick off its robotaxi event scheduled for Wednesday.

(Peter Nurse, Ambar Warrick contributed to this article.)