U. S. stocks remained cautious on Wednesday as investors weighed higher-than-expected PPI data.These figures suggest that even if the Fed tries to rein in high inflation, there will be more rate rises in the future.

The Dow Jones industrial average rose 133 points, or 0.5%. The s & p 500 index rose 0.1%. But the Nasdaq composite index fell 0.1%.

Judging from the current US stock market, both parties and bears have strong reasons:Market valuations are seen by many as very attractive, coupled with the fact that the Fed's rate-raising cycle is nearing the end. But the bears believe that instead of clarifying the outlook for Fed policy, the inflation outlook will plunge the US economy into recession.

Specific data showed that US PPI rose 0.4 per cent month-on-month in September, higher than market expectations of 0.2 per cent, and reversed the 0.1 per cent decline in August, pushing the figure up 8.5 per cent from a year earlier, higher than market expectations of 8.4 per cent.

The PPI data is one of the inflation indicators that investors are looking at together with the Fed. If inflation remains high, the Fed is more likely to continue to actively raise interest rates to curb inflation. This means that interest rates will continue to rise and remain high for a long time will put pressure on the US stock market.

Investors will get more inflation data on Thursday, when the consumer price index (CPI) report for September is released. CPI is a measure of changes in the prices of a basket of ordinary consumer goods and services.

The minutes of the Fed's September meeting will also be released in the early hours of the morning. Although Federal Reserve Chairman Powell has acknowledged that a sharp increase in interest rates can be painful, the Fed will continue its efforts to reduce inflation.

At its last meeting, the Fed raised its benchmark interest rate by another 75 basis points and hinted that it would continue to raise rates well above current levels. The market will look for more clues about the path of future interest rate hikes from later minutes.

In an effort to reduce inflation close to its highest level since the early 1980s, the fed raised the federal funds rate to a range of 3 per cent, 3.25 per cent, the highest level since early 2008, after the fed raised 0.75 percentage points for the third time in a row.

Quincy Krosby, chief global strategist at LPL Financial, said: "Powell has repeatedly reiterated that without price stability, we cannot have a strong economy or a strong job market. This has become his oral poem. Investors worry that restrictive monetary policy, a tighter financial environment, could lead to some kind of financial accident that dries up liquidity and does more damage to the global economy. "

Treasury yields rose slightly, but traders noted that core producer price index inflation data were largely in line with expectations and bond markets reacted modestly. The yield on the benchmark 10-year Treasury note rose to 3.96 per cent.

Michael Schumacher of Wells Fargo & Co said: "the market thinks that the PPI data may be a little bearish for bonds and may be an ominous signal for tomorrow's CPI." Usually, the market ignores PPI.Now people are so worried about inflation that people are more concerned about it than usual. I don't think it's a big deal. The important number is tomorrow's CPI."

Although only 4 per cent of S & P 500 stocks reported third-quarter earnings, sentiment has been hit, according to Wells Fargo & Co.

"the response to the third-quarter results got off to a difficult start," Chris Chris Harvey wrote in a report on Wednesday. "We expect the response to improve as the results go forward, but the early signals are not very good, coupled with a bleaker overall macro environment, affecting market sentiment. "