Stock market today: Wall Street drifts to a mixed finish after an inflation update

NEW YORK (AP) — U.S. stocks drifted to a mixed finish Wednesday after the latest inflation update boosted hopes that more help for the economy will arrive next month through a cut to interest rates.

The S&P 500 was nearly unchanged and edged up by less than 0.1%, coming off its first loss since a big rally erupted after Election Day last week. The Dow Jones Industrial Average added 47 points, or 0.1%, and the Nasdaq composite slipped 0.3%.

The bond market was also mixed after a report said the inflation that U.S. consumers felt last month was exactly as economists expected. It accelerated to 2.6% from 2.4%, but an underlying measure called “core inflation” did not accelerate. Such core inflation can be a better predictor of future trends, economists say, and the as-expected number boosted expectations for help coming from the Federal Reserve.

“Bang in-line core inflation leaves the Fed on track to cut rates in December,” according to Lindsay Rosner, head of multi sector fixed income investing at Goldman Sachs Asset Management.

The Fed began cutting interest rates from their two-decade high in September to offer support for the job market, hoping to keep it humming after bringing inflation nearly all the way down to its target of 2%. It cut again earlier this month, and traders now see an improved probability of roughly 80% for a third cut at its meeting next month, according to data from CME Group.

Those expectations sent the yield for the two-year Treasury down to 4.27% from 4.34% late Tuesday. The yield on the 10-year Treasury, which also takes future economic growth more into account, fell initially after the inflation report. But it pared its loss and eventually rose to 4.45%, up from 4.43% late Tuesday.

The question is what will happen with rates in 2025. Prior forecasts published by the Fed implied it could keep cutting rates through next year. But Donald Trump’s victory in the presidential election may have scrambled such plans. Economists say his preferences for lower tax rates, higher tariffs and less regulation could ultimately lead to higher U.S. government debt and inflation, along with faster economic growth.

While lower interest rates can give a boost to the economy and to prices for investments, they can also give inflation more fuel.

Still, Wednesday’s data was reassuring for the market following a run of stronger-than-expected data on the economy, which could have signaled upward pressures on inflation.

“The market may be concerned that we are at an inflection point, with inflation potentially returning to an upward trajectory,” said Scott Wren, senior global market strategist at Wells Fargo Investment Institute. “We see inflation modestly higher next year. We don’t think today’s CPI data will do much to the market.”

On Wall Street, Rivian Automotive jumped 13.7% after the electric-vehicle company gave more details about a joint venture it’s entering with Volkswagen Group that they had previously announced. The deal’s total size could be worth up to $5.8 billion, which is more than the $5 billion the companies had previously said.

Spirit Airlines’ stock lost 59.3%. The airline said in a regulatory filing that it’s still trying to work out a deal to renegotiate the repayment of its debt. If it can reach an agreement, the airline said it could wipe out the company’s stockholders, but it could also protect employees and customers.

All told, the S&P 500 rose 1.39 to 5,985.38. The Dow added 47.21 points to 43,958.19, and the Nasdaq composite slipped 50.66 to 19,230.74.

In stock markets abroad, Japan’s Nikkei 225 fell 1.7% after its wholesale inflation rate reached its highest level since July of last year. South Korea’s Kospi sank 2.6% after Samsung Electronics shares fell to their lowest level in over four years.

Indexes were modestly lower across much of the rest of Asia and Europe.

In the crypto market, bitcoin crossed above $93,000 as cryptocurrencies generally soared, before pulling back below $90,000 in afternoon trading. Trump has embraced cryptocurrencies and pledged to make his country the crypto capital of the world.

Dogecoin, a cryptocurrency that’s been a favorite of Tesla’s Elon Musk, also gave up some of its gain from earlier in the day. Trump named Musk as one of the heads of a “Department of Government Efficiency,” or DOGE for short.

AP Writer Zimo Zhong contributed.

FILE - A sign marking the intersection of Broadway and Wall Street is shown in New York's Financial District on Oct. 30, 2024. (AP Photo/Peter Morgan, File)

FILE - A sign marking the intersection of Broadway and Wall Street is shown in New York's Financial District on Oct. 30, 2024. (AP Photo/Peter Morgan, File)

A pair of traders work in their booth on the floor of the New York Stock Exchange, Thursday, Nov. 7, 2024. (AP Photo/Richard Drew)

A person walks in front of an electronic stock board showing Japan's Nikkei index at a securities firm Wednesday, Nov. 13, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person rides a bicycle in front of an electronic stock board showing Japan's Nikkei index and US dollar/Japanese Yen exchange rate at a securities firm Wednesday, Nov. 13, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person looks at an electronic stock board showing Japan's Nikkei index at a securities firm Wednesday, Nov. 13, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

A person stands in front of an electronic stock board showing Japan's Nikkei index at a securities firm Wednesday, Nov. 13, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

Person walk in front of an electronic stock board showing Japan's Nikkei index at a securities firm Wednesday, Nov. 13, 2024, in Tokyo. (AP Photo/Eugene Hoshiko)

WASHINGTON (AP) — The fireplace was crackling in the Oval Office on Wednesday morning as President Joe Biden shook hands with Donald Trump and congratulated him on his election victory.

“Welcome back,” Biden told Trump, who said the transition “would be as smooth as it can get.”

It was a cordial exchange that was jarringly at odds with the strangeness of the political moment. Here was Biden, who once made it his mission to prevent his predecessor from becoming his successor, preparing to hand over power to Trump, who never conceded his defeat to Biden four years ago.

But official Washington, which still feels the aftershocks of Trump’s chaotic first term, appeared resigned to the potential earthquake of his second. There were no protests on the streets and no surprises during the past-and-future president’s nearly four-hour visit.

It was a far different scene than when Trump visited the city after his shocking victory over Hillary Clinton eight years ago. Back then, the country was still trying to figure out the real estate mogul and former reality television star, and Trump seemed somewhat nervous in his Oval Office meeting with out-going President Barack Obama.

Now, Trump is undeniably triumphant and confident in his return, solidifying his place in American politics by overcoming two impeachments, a criminal conviction and two assassination attempts to win a second term in the White House.

The victory lap began as soon as Trump touched down in his trademark red-white-and-dark-blue plane with his name emblazoned on the side.

“It’s nice to win,” Trump told House Republicans during his first meeting of the day.

He also hinted that he may not want to leave when his term was over.

“I suspect I won’t be running again unless you say ‘He’s so good we got to figure something else out,’” Trump said.

The lawmakers laughed. Was it really a joke? Or a suggestion that Trump views the constitutional prohibition on serving more than two terms as malleable?

There was no way to know for sure, an uncertainty that recalled the did-he-really-mean-that tone of Trump’s original stint in Washington. Either way, it seemed unlikely that Trump would face much resistance from a Republican Party that has been remolded in his image and will likely control all branches of the federal government.

“If Donald Trump says, ‘Jump three feet high and scratch your head,’ we all jump three feet high and scratch our head,” said Rep. Troy Nehls of Texas. He wore a “Make America Great Again” tie and gold Trump sneakers.

As if to demonstrate his dominance, Trump announced a series of loyalists for top administration positions, including Florida Rep. Matt Gaetz for attorney general and former Hawaii Rep. Tulsi Gabbard for national intelligence director. Concerns about their lack of qualifications could make it difficult for them to win Senate confirmation — but only if Senate Republicans decide to cross Trump by opposing them.

The meeting with House Republicans took place in a hotel conference room blocks from the U.S. Capitol, which Trump had urged his supporters to march on Jan. 6, 2021, as Congress was ceremonially certifying Biden's election victory. Fueled by Trump's false claims of voter fraud, rioters smashed windows, fought with police officers and tried to prevent the transfer of power.

They failed, but in subsequent years, Trump convinced Americans to set aside concerns about his attempt to remain in power and trust him to address their economic malaise and concerns about migration.

He won a decisive victory over Kamala Harris, the Democratic vice president who replaced Biden at the top of the ticket after a disastrous debate performance crystallized concerns about his age over the summer.

When Trump finished on Capitol Hill on Wednesday, his motorcade whisked him to the White House for the meeting with Biden. A few dozen Trump supporters stood outside the gate before he arrived, one holding a sign saying, “Welcome back.”

Scores of journalists crowded onto the grounds in hopes of catching a glimpse of Trump — so many the Secret Service ran out of the temporary passes that are given to visiting reporters.

Harris kept her distance. A person familiar with her schedule said she was holding private meetings at her official residence.

Trump's campaign said his visit to Washington was “a harbinger of the sweeping change to come in a few short weeks.”

An X factor for Trump's second presidency is Elon Musk, the world's richest man who is frequently at the president-elect's side. He owns the social media company formerly known as Twitter, as well as an electric vehicle manufacturer and a space rocket business with billions of dollars in government contracts. Trump said this week that Musk would help lead an advisory commission on government efficiency.

Musk joined Trump for his meeting with House Republicans and added star power of his own.

“He got three standing ovations,” said Rep. Ralph Norman of South Carolina.

It's not just the federal government that is coming around to the reality of Trump's return. City leaders are too.

D.C. Mayor Muriel Bowser said Tuesday that she's committed to “providing a smooth and collaborative transition” and she wants to work with the new administration on getting federal employees back to their offices to rejuvenate downtown areas.

She also appeared to be bracing for confrontations ahead.

“We’re not in a new place,” Bowser said. “We’ve been in this place before”

Associated Press reporters Farnoush Amiri, Josh Boak, Kevin Freking, Ashraf Khalil, Zeke Miller, Darlene Superville and Will Weissert contributed to this report.

Elon Musk, left, sits with Kelly Johnson, wife of House Speaker Mike Johnson of La., as President-elect Donald Trump speaks at a meeting of the House GOP conference, Wednesday, Nov. 13, 2024, in Washington. (AP Photo/Alex Brandon)

Members of the press gather outside the West Wing of the White House in Washington, Wednesday, Nov. 13, 2024, before President Joe Biden meets with President-elect Donald Trump in the Oval Office. (AP Photo/Susan Walsh)

President-elect Donald Trump's motorcade drives through downtown Washington, as he travels to a meeting with the House GOP conference, Wednesday, Nov. 13, 2024, in Washington. (AP Photo/Alex Brandon)

President-elect Donald Trump arrives at Joint Base Andrews, Md., Wednesday, Nov. 13, 2024. (AP Photo/Alex Brandon)

President Joe Biden meets with President-elect Donald Trump in the Oval Office of the White House, Wednesday, Nov. 13, 2024, in Washington. (AP Photo/Evan Vucci)

President-elect Donald Trump speaks as he arrives for a meeting with the House GOP conference, Wednesday, Nov. 13, 2024, in Washington. (AP Photo/Alex Brandon)

President-elect Donald Trump arrives to speak at a meeting of the House GOP conference, Wednesday, Nov. 13, 2024, in Washington. (AP Photo/Alex Brandon)