Stock market today: Dow, S&P 500, Nasdaq rise as inflation print keeps Fed rate cut on track

US stocks moved higher in afternoon trading on Wednesday as investors weighed fresh consumer inflation data that looked to keep the Federal Reserve on pace for another rate cut next month.

The Dow Jones Industrial Average (^DJI) jumped around 0.4%, coming off a steep slide after stocks closed lower across the board. Both the benchmark S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) also rose, up about 0.3% and 0.2%, respectively.

Meanwhile, bitcoin (BTC-USD) prices continued their move to the upside, climbing roughly 5% to trade above $92,000 a coin.

Consumer prices rose largely as forecast in October, with the Consumer Price Index rising 2.6% year over year and 0.2% on a month-over-month basis, both meeting forecasts. Rises in "core" inflation — of 3.3% year over year and 0.3% month over month — also met estimates.

Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards

Inflation has taken center stage again after the post-election rip higher hit a wall. The FOMO market lost some mojo Tuesday as it ponders whether President-elect Donald Trump's policies could boost inflation as well as the economy. That has helped push Treasury yields higher, promising higher borrowing costs all around.

The report appears to keep the Federal Reserve on track for a December rate cut. Minneapolis Fed president Neel Kashkari told Yahoo Finance that inflation data was the key focus for the central bank in the weeks ahead, saying at Yahoo Finance’s Invest conference that any surprise to the upside "might give us pause."

According to the CME FedWatch tool, 80% of traders expect a rate cut in December.

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AMD (AMD) will lay off 4% of its global workforce to focus on more growth initiatives like artificial intelligence, according to multiple reports.

The company, which is viewed as a top rival to AI chip maker Nvidia (NVDA), employed about 26,000 workers as of last year, according to its annual 10-K filing. That would mean just over 1,000 are on the chopping block, although the exact number is currently unclear.

“As a part of aligning our resources with our largest growth opportunities, we are taking a number of targeted steps,” the company said in a statement shared with outlets on Wednesday. “We are committed to treating impacted employees with respect and helping them through this transition.”

The stock dropped around 2% after the announcement. Shares have fallen just over 4.5% since the start of the year.

Disney (DIS) will report its fiscal fourth quarter earnings before the bell on Thursday as the company aims to extend recent momentum in streaming and also stabilize demand within its parks business after the segment fell short in its most recent quarter.

Disney adjusted its reporting structure after CEO Bob Iger reorganized the company last year into three core business segments: Disney Entertainment, which includes its entire media and streaming portfolio; Experiences, which encompasses the parks business; and Sports, which includes ESPN networks and ESPN+.

Thursday's report marks the first time investors will have a chance to digest year-over-year trends of the three core business units.

Here's how Wall Street expects Disney to perform, according to consensus estimates compiled by Bloomberg:

Bitcoin (BTC-USD) touched new milestone on Wednesday — topping a record $93,000 before paring gains.

The cryptocurrency has been at the center of the "Trump trade" following Donald Trump's White House win last week. Bitcoin has surged more than 30% since the election, frequently touching new daily records.

Other cryptocurrencies also rose including ethereum (ETH-USD), solana (SOL-USD), and even meme coin doge (DOGE-US).

Investors have flocked to bitcoin and other coins under the presumption that Trump will follow through on his pro-crypto campaign promises.

As Yahoo Finance's Josh Schafer points out, the president-elect has suggested appointing a crypto Presidential Advisory Council, firing SEC Chair Gary Gensler, and creating a "strategic national bitcoin stockpile."

Here are some of the top trending tickers on the Yahoo Finance homepage:

Tesla (TSLA): Shares erased earlier gains after initially climbing on the announcement that CEO Elon Musk, along with conservative activist Vivek Ramaswamy, will head up a new Department of Government Efficiency, or DOGE for short. The stock, which fell 6% on Tuesday, has experienced a stellar rally in recent weeks. Shares are up over 30% since the start of the year.

Rivian (RIVN): The stock jumped by double digits after Volkswagen raised its investment in the rival electric carmaker to $5.8 billion. Shares remain under pressure on a year-to-date basis, however — down about 50%.

Spirit Airlines (SAVE): As Ines Ferré reports, the airliner plunged as much as 64% early Wednesday, the most on record, as it explores a deal with creditors to restructure its debt amid a reported threat of bankruptcy after merger talks with Frontier (ULCC) collapsed.

Cava (CAVA): Shares surged on Wednesday, climbing as much as 17% after the fast-casual Mediterranean chain reported third quarter earnings that beat on both the top and bottom lines. Same-store sales growth, which increased by 18% year over year in the quarter, also came in ahead of expectations.

The company lifted its full-year same-store sales forecast as it expects to open more stores than previously guided. Cava said it now expects same-store sales to grow by 12% to 13%, up from the previous 8.5% to 9.5%.

Yahoo Finance's Brooke DiPalma reports:

Food inflation remained sticky in October as select items drove prices higher.

The cost of groceries climbed 1.1% compared to a year ago, per data from the Bureau of Labor Statistics, and 0.1% compared to September. The overall food category increased 2.1%, driven higher by the cost to dine out, which was up 3.8%. The growth in prices of restaurant meals has outpaced the growth in grocery prices in 2024 as rising wages continue to contribute to costs.

Overall, the Consumer Price Index (CPI) increased 2.6% over the prior year in October.

"During the pandemic, we had a tremendous amount of acceleration, and that's essentially fully back to sort of where it was prior to the pandemic," BLS economist Steve Reed said of grocery prices.

Egg prices, which are historically volatile, contributed to the stubborn grocery inflation. The item saw a 30.4% year-over-year increase but a 6.4% decline month over month, the largest since April.

Prices of oranges, including tangerines, also boosted overall food prices. The fruit has been affected by drought, extremely high temperatures caused in part by the El Niño climate pattern, and citrus greening, a bacterial disease. Production in Brazil is down 9% year over year, per the US Department of Agriculture.