US stocks tick higher as traders try to recover from inflation-induced plunge

• US stocks ticked higher Wednesday morning as traders tried to recover from yesterday's selloff.

• Stocks took a hit after January inflation came in hotter-than-expected, with consumer prices rising 3.1%.

• Investors have been pushing back their expectations for Fed rate cuts this year.

US stocks ticked higher on Wednesday as traders tried to shake off the previous session's inflation-induced plunge.

January inflation came in hotter than expected, sparking a sharp sell-off in stocks on Tuesday. Consumer prices grew 3.1% year-over-year in January, above the expected 2.9%. Meanwhile, core inflation saw its largest surge in eight months, rising 3.9% on an annualized basis.

That's dampened and pushed back expectations for Fed rate cuts this year. Markets are now pricing in a near-0% chance the Fed could cut rates 175 basis points by December, down from a 38% chance priced a month ago, according to the CME FedWatch tool.

Investors on Wednesday are waiting on comments from Chicago Fed President Austin Goolsbee later in the day to give further insight into what the central bank is thinking about monetary policy.

"The stock market is coming to grips with the reality that interest rates are likely to remain higher for longer. The market was too optimistic about the timing and quantity of Fed rate cuts this year," Jeremy Straub, Coastal Wealth's chief investment officer, said in a statement on Wednesday. "While it's likely that the Fed is done raising rates, it's way too early to tell when and by how much the Fed will cut interest rates, and that's one of the main reasons why we see a repricing of the stock market."

Here's where US indexes stood shortly after the 9:30 a.m. opening bell on Wednesday: 

• S&P 500: 4,981.55, up 0.56%

• Dow Jones Industrial Average: 38,371.45, up 0.24% (+93 points)

• Nasdaq Composite: 15,784.52, up 0.83%

Here's what else happened today: 

• Peter Thiel's fund timed a reported $200 million crypto spending spree perfectly.

• Billionaire investor Carl Icahn took a near-10% stake in JetBlue, echoing his iconic TWA deal.

In commodities, bonds, and crypto: 

• West Texas Intermediate crude oil ticked higher 0.5% to $78.26 a barrel. Brent crude, the international benchmark, rose 0.4% to $83.13 a barrel.

• Gold slipped 0.2% to $2,002.80 per ounce.

• The 10-year Treasury yield ticked one basis point lower to 4.297%

• Bitcoin surged 4.77% to $51,638.

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