Wall Street edges higher after rout on rate hike worries; Tesla up 1.5%

Traders price in 37% chance of 100 bps rate hike next week; Starbucks projects strong profit growth over next three years

U.S. stock indexes edged higher on Wednesday following a sharp selloff in the previous session after red-hot inflation data fanned worries about steep interest rate hikes by the Federal Reserve.
 

The three major indexes on Tuesday posted their biggest one-day percentage declines since June 2020, as the consumer price report cemented bets that the U.S. central bank will go ahead with its third straight 75-basis-point increase in rates next week.
 

Markets are also pricing in a 37% chance of a massive 100 bps increase by the Fed, and expects rates to peak at 4.34% by March 2023.
 

In the latest