- Madrid's Carvajal to miss several months after serious knee injury
- Israel pounds Lebanon ahead of Hamas attack anniversary
- Two elephants die in flash flooding in northern Thailand
- Sabalenka targets world number one and Wuhan hat-trick
- Toddler among 4 dead in migrant Channel crossings
- Tunisia votes with Saied set for re-election
- Bagnaia sets 'example' with Japan MotoGP win to cut gap on Martin
- Intense Israeli bombing rocks Beirut ahead of war anniversary
- Mozambique vote: no suspense but some disillusion
- Austrian rapper channels anti-racist rage in Romani hip-hop songs
- Ohtani magic powers Dodgers over Padres in MLB playoff thriller
- Five of the best: Pakistan-England Test thrillers
- Man sets arm on fire as marches across US mark Gaza war anniversary
- Vietnam's young coffee entrepreneurs brew up a revolution
- Trump rallies at site of failed assassination: 'Never quit'
- Too hot by day, Dubai's floodlit beaches are packed at night
- Is music finally reckoning with #MeToo?
- Fans hail Trump's 'guts' as he returns to site of rally shooting
- Lebanon state media says 'very violent' Israeli strikes hit south Beirut
- Guardians maul Tigers, miracle Mets rally in MLB series openers
- Lebanon state media says Israeli strikes hit south Beirut
- Miami on track for MLS record points after win in Toronto
- Madrid beat Villarreal but Carvajal suffers knee injury
- Madrid beat Villarreal to move level with Liga leaders Barcelona
- Monaco take top spot in Ligue 1 with win at Rennes
- French rugby player on rape charge whistled but 'serene' on return
- Madrid beat Villarreal to level Liga leaders Barca
- Thuram treble fires Inter past Torino and up to second
- 'Fight': defiant Trump jets in to site of rally shooting
- Toddler among 3 dead in migrant Channel crossings
- Mexico City's new mayor sworn in with pledges on water, housing
- Israel on alert ahead of Hamas attack anniversary
- Guardians maul Tigers in MLB playoff series opener
- Macron criticises Israel on Gaza, Lebanon operations
- French rugby player whistled but 'serene' on return amid ongoing rape case
- Kovacic stars as Man City sink Fulham to get title bid back on track
- Retegui hat-trick fires five-star Atalanta to hammering of Genoa
- Heavyweights Australia, England off to World Cup winning starts
- Visiting UN refugee agency chief decries 'terrible crisis' in Lebanon
- Spinners come to party as England defeat Bangladesh at T20 World Cup
- Search continues for missing in deadly Bosnia floods
- Man City sink Fulham to get title bid back on track
- France's Auradou whistled on Pau return in Perpignan loss amid ongoing rape case
- A 'forgotten' valley in storm-hit North Carolina, desperate for help
- Arsenal hit back in style after Southampton scare
- Thousands march for Palestinians ahead of Oct 7 anniversary
- Hezbollah heir apparent Safieddine out of contact after strikes
- Liverpool stay top of Premier League as Arsenal, Man City win
- In dank Tour of Emilia, Pogacar shines in rainbow jersey
- DR Congo launches mpox vaccination drive, hoping to curb outbreak
US stocks rebound as market eyes Fed rate cut after inflation data
Semiconductor stocks were among the strongest performers Wednesday as US stocks staged a rebound to finish higher following mixed inflation data.
Wall Street indices initially fell following monthly consumer price index data, which kept the Federal Reserve on track to cut interest rates but weakened the case for a larger reduction.
The CPI rose 2.5 percent in August from a year ago, down from a 2.9 percent increase in July. It was the lowest annual figure since February 2021.
However, a measure of inflation that strips out volatile food and energy costs rose by a larger-than-expected 0.3 percent from a month earlier.
While investors widely expect the Federal Reserve to cut interest rates later this month, markets have been unsure of how big the cut will be.
Following Wednesday's inflation data, futures markets showed a jump in expectations for a smaller 0.25 percent cut instead of a half-point cut.
As the day progressed, investors realized the initial sell-off was an overreaction to the CPI data and that a Fed rate cut will still be positive for the stock market, said Art Hogan, chief market strategist at B. Riley Wealth.
All three major indices ended higher, led by the Nasdaq, which gained 2.2 percent.
Semiconductor companies -- which have been under pressure in recent weeks -- led Wednesday's gains, with artificial intelligence star Nvidia rising more than eight percent and Micron and Intel also notching big gains.
But XTB brokerage research director Kathleen Brooks said Wednesday's US inflation data "complicates the outlook for rate cuts further in the future".
While the data supports the Fed beginning to cut interest rates, "does it justify the 10 rate cuts that are currently priced in by the Fed Funds market over the next nine months?"
Oil prices recovered in part after a hammering on Tuesday, when Brent North Sea crude slid below $70 per barrel for the first time since December 2021 on concerns about the global outlook.
Analysts pointed to offshore platform production suspensions in the Gulf of Mexico due to Hurricane Francine.
Paris and Frankfurt stocks diverged ahead of an expected interest rate cut on Thursday, with Frankfurt boosted by a more than 16 percent surge in Commerzbank shares after Italian rival UniCredit announced it had acquired a nine percent stake.
The European Central Bank is expected to cut interest rates again this week as inflation drifts back down towards its two-percent target, but policymakers will likely stay tight-lipped on future moves.
Sentiment in London was dented by official data showing Britain's economy stalled in July.
Asia's main equity indices closed lower with a strong yen weighing on Tokyo's market, while Chinese stocks were knocked by concerns over China's struggling economy, analysts said.
- Key figures around 2050 GMT -
New York - Dow: UP 0.3 percent at 40,861.71 (close)
New York - S&P 500: UP 1.1 percent at 5,554.13 (close)
New York - Nasdaq Composite: UP 2.2 percent at 17,395.53 (close)
London - FTSE 100: DOWN 0.2 percent at 8,193.94 (close)
Paris - CAC 40: DOWN 0.1 percent at 7,396.83 (close)
Frankfurt - DAX: UP 0.4 percent at 18,330.27 (close)
Tokyo - Nikkei 225: DOWN 1.5 percent at 35,619.77 (close)
Hong Kong - Hang Seng Index: DOWN 0.7 percent at 17,108.71 (close)
Shanghai - Composite: DOWN 0.8 percent at 2,721.80 (close)
Dollar/yen: DOWN at 142.38 yen from 142.44 yen on Tuesday
Euro/dollar: DOWN at $1.1018 from $1.1020
Pound/dollar: DOWN at $1.3046 from $1.3080
Euro/pound: UP at 84.43 pence from 84.24 pence
Brent North Sea Crude: UP 2.1 percent at $70.61 per barrel
West Texas Intermediate: UP 2.4 percent at $67.31 per barrel
burs-jmb/md
A.Mahlangu--AMWN