Wall Street Rebounds Amid Inflation Reports and Presidential Debate Insights

Wall Street reversed an earlier sell-off to close higher as inflation data suggested a smaller rate cut by the Federal Reserve. The U.S. Presidential debate was also closely watched for policy clues, impacting investor sentiment. Tech stocks led the rally, while European and Asian markets showed mixed results.

Wall Street reversed an earlier sell-off to close higher on Wednesday, driven by new inflation data suggesting a smaller rate cut by the Federal Reserve next week. Brent crude prices also rebounded from 3-1/2 year lows.

All three major U.S. stock indexes pulled a U-turn, with tech stocks leading the rally. Investors analyzed the U.S. Presidential debate for potential policy shifts. The Labor Department's Consumer Price Index (CPI) showed annual inflation cooling to 2.5%, while core inflation rose by 0.3% monthly and 3.2% annually.

Financial markets largely expect the Fed to cut its key policy rate by 25 basis points, with an 85% probability according to CME's FedWatch Tool. Meanwhile, European stocks ended flat, and mixed results were seen across global markets. Oil prices steadied, and gold prices dipped.

(With inputs from agencies.)