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US stocks traded higher on Wednesday after erasing earlier losses, as investors were digesting the latest inflation data.
At midday, the Dow Jones Industrial Average added 49.98 points, or 0.20 per cent, to 24,690.43. The S&P 500 increased 13.61 points, or 0.51 per cent, to 2,676.55.
US equities opened lower on Wednesday following the release of stronger-than-expected inflation report.
Excluding the volatile food and energy components, the core consumer prices gained 0.3 per cent in January. In the 12 months through January, the core CPI increased 1.8 per cent.
Analysts said the string of data all beat market expectations and thus rekindled concerns of surging inflation, which had helped to send the US equities plunging to two-year lows last week.
Investors worried that strong rise in inflation would push the Federal Reserve to raise interest rates as many as three times later this year.
Market expectations for a rate-hike move in December are now at nearly 62 per cent, up from 50 per cent the day before, according to the CME's FedWatch tracker.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)