Stock market outlook: Traders assess key inflation data

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US stocks climb after inflation data shows prices cooled more than expected in March

US stocks moved higher on Wednesday as traders take stock of the cooler-than-expected March inflation report.

The consumer price index, a gauge of prices for goods and services in the US, rose 0.1% in March compared to economists' estimates of 0.2%, and was up 5% from a year earlier. The closely watched core CPI, which excludes more volatile food and energy prices, accelerated, up 5.6% on an annualized basis compared to 5.5% in February.

Despite the overall drop in March, inflation remains elevated as the Federal Reserve tries to wrangle it down to its 2% target. However, the central bank's inflation battle is showing signs of progress as March's figures marked the slowest pace of price increases in nearly two years. Investors this week are also gearing up for the first-quarter earnings season to kick off on Friday, starting with Wall Street giants including Wells Fargo and JPMorgan.

 

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