The Dow Jones was the best performing index in the U.S. on Wednesday, as an increase in factory activity helped the index trade flat on a day when other indices were down.
Data released by IHS Markit on Wednesday showed that its U.S. manufacturing PMI increased to 59 so far this month, from a final reading 58.6 in February.
The reading above 50 indicates that the sector is growing, which comes a day after Powell and Yellen both gave positive outlooks for the U.S. economy.
Speaking in front of congress, Yellen did however warn that, “Economic recovery depends on getting pandemic under control, vaccines are critical to that.”
The Dow Jones was down just 0.01%, while the NASDAQ down 2.01% and S&P 500 down 0.55% were both trading in the red.
Oil prices rebound despite growing Stockpiles
After several days of bearish sentiment, Oil prices rebounded on Wednesday despite data showing that Crude stockpiles had unexpectedly risen.
In the Energy Information Administration’s latest report, it was shown that Crude inventories rose by 1.912 million barrels last week, versus market expectations for a drawdown of 272,000 barrels.
This comes as OPEC+ is set to meet next Thursday to discuss whether to ease or maintain production cuts, with many leaning to the latter of the two.
Since deciding to hold off on increasing supply, Europe has seen COVID-19 rise, validating the cartel’s decision to hold steadfast.
WTI crude rose to an intraday high of $61.34, after trading as low as $57.29 to start the day.
Britain sees inflation rate unexpectedly fall
Data released from the United Kingdom today showed that the country’s inflation rate continued to move further away from the BOE’s target.
Figures released by the Office for National Statistics, showed that the annual rate dropped to 0.4% in February from 0.7% the month prior, which was well below expectations of a 0.8% increase.
The biggest contributor to the decline was clothing prices, which fell to their lowest since 2009.
Despite this, the UK’s main index the FTSE 100 rose for a third consecutive session, trading 0.20% higher.
Quote of the day – “The fundamental law of investing is the uncertainty of the future.”– Peter Bernstein
Senior Market Analyst