Markets were muted on Wednesday, as investors braced for a fresh inflation update that economists expect will show a slowdown in the rapid pace of inflation that has afflicted the U.S. economy this year.
Futures prices that track the S&P 500 index rose slightly, with stocks in Europe relatively unchanged and Asian exchanges showing losses.
The expectation that inflation will begin to subside has helped improve investor sentiment over the past month, bolstered by signs that in spite of the Federal Reserve’s aggressive rate increases, companies remain profitable and the jobs market is still in good shape.
U.S. government bonds, which are sensitive to trends in inflation and monetary policy, were little changed. The dollar fell slightly against a basket of currencies of major trading partners. Oil prices were down, with West Texas Intermediate crude, the U.S. benchmark, falling more than 1 percent, to around $89 a barrel.
Some…
