DJI: Dow Jones Drops as August Inflation Edges Higher to 3.7%, Futures Jump

America’s inflation data came in hotter than expected, but Wall Street isn’t too worried that it would drive the Fed into “must-hike-now” mode.

• The Dow Jones Industrial Average index DJI flipped to the downside on Wednesday, drifting away from the pack of three. The other two benchmarks closed higher with the S&P 500 IXIC gaining 0.3% on the day.
• The 30-stock blue-chip average, generally regarded as a gauge for real-economy stocks, was hit by the latest inflation report. The consumer-price index for August came in a bit hotter than expected at 3.7%, against a 3.6% consensus, and above July’s 3.2% inflation print.
• Investors are pinning their hopes on the continued flow of receding inflation figures as they await the Fed’s rate decision this Wednesday. Analysts are confident the odd August figure won’t affect the Fed’s intended retreat from the most aggressive interest-rate campaign in decades. Also, Dow Jones futures rose 0.2% in pre-market deals Thursday.