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

US stocks were mixed in early 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) rose just around 0.1%, coming off a steep slide after stocks closed lower across the board. Both the S&P 500 (^GSPC) and Nasdaq Composite (^IXIC) fell into the red after initially rising earlier in the session, down about 0.1% and 0.3%, respectively.

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.

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.

Meanwhile, Trump has named Tesla (TSLA) CEO Elon Musk to co-lead a new Department of Government Efficiency — another challenge for analysts trying to assess the electric vehicle maker's prospects. The incoming president's picks for his Cabinet are also being closely watched for impact on his policies and the economy, though DOGE is not a government agency.

Tesla's stock erased earlier gains as shares attempted a comeback from a 6% fall on Tuesday. Meanwhile, shares of Rivian (RIVN) jumped by double digits after Volkswagen raised its investment in the rival electric carmaker to $5.8 billion.

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

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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.