The US stock market traded sideways on Wednesday as investors digested the latest Consumer Price Index (CPI) report, which aligned closely with expectations. While yesterday’s Producer Price Index (PPI) data, which was softer than expected, helped the stock market to record gains and supported a more aggressive monetary policy, today’s data affected investors’ expectations, which subsided to a certain extent.

The market continues to anticipate an interest rate cut at the next Federal Reserve meeting while bets shift between a 25 and 50 basis points cut when inflation is seemingly going in the right direction.

On the sector level, performances were mixed and stocks recorded some volatility. Stocks like Nvidia were seeing some correction after two weeks of gains. Alphabet's shares declined following reports that the US Department of Justice might seek to dismantle Google after a court found it had monopolized the online search market.