NEW YORK (AP) — U.S. stocks rallied Wednesday as investors locked in their final moves ahead of a highly anticipated report on inflation, one that could show whether Wall Street's rising optimism recently has been warranted or overdone.
The S&P 500 climbed 1.3% for its second straight gain before Thursday morning’s inflation data. The Dow Jones Industrial Average rose nearly 269 points, or 0.8%, while the Nasdaq composite gained 1.8%.
Stocks have started 2023 with gains on hopes that cooling inflation and a slowing economy may get the Federal Reserve to ease off its sharp hikes to interest rates. Such increases can help stamp out high inflation, but they also slow the economy by design and raise the risk of a recession while hurting prices for stocks and other investments.
