Stocks higher after latest inflation data, Fed decision imminent: Live updates

Stocks rise after latest inflation data, Fed decision imminent: Live updates

U.S. stocks rose sharply on Tuesday, boosted by inflation data showing a slowdown and expectations that the Federal Reserve would slow the pace of interest rate hikes.

Important points:

The S&P 500 rose 1.4% to close at its highest level since April 2022.

The Dow Jones Industrial Average rose 1.5%, a gain of more than 500 points.

The Nasdaq Composite gained 1.2%.

The rise came after consumer price index (CPI) data showed annual inflation fell to 7.3%, below analysts' expectations of 7.4%.

Investors are currently awaiting the Federal Reserve's interest rate decision, which is expected to be released later today.

Reasons why the stock market is rising:

Investors expect slowing inflation will reduce the need for the Federal Reserve to raise interest rates significantly.

Any loose monetary policy is expected to boost economic growth and corporate profits.

The positive inflation data boosted sentiment among investors who have been worried about the impact of persistent inflation on the economy.

Future outlook:

The global economy faces many challenges and the future remains uncertain.

Inflation is expected to continue declining but is likely to remain above the Fed's 2% target for the longer term.

The Fed is likely to continue raising interest rates, albeit at a slower pace.

Future market performance will depend on a variety of factors, including economic growth,

 monetary policy and developments in the war in Ukraine.

Live Update:

Investors are closely watching the Federal Reserve's interest rate decision, which is expected to be announced within minutes.

The Fed's decision could trigger significant market volatility.

We will update this article with any new information or news.

The Federal Reserve is expected to raise interest rates by 0.50% at its meeting on Tuesday.

 However, some investors are now betting that the Fed could delay a March 2024 rate hike if inflation continues to fall.