-
Indices swung on Thursday as traders received wholesale inflation data.
-
The producer price index showed prices rose 0.2% last month as expected.
-
Markets will be watching Federal Reserve Chairman Jerome Powell’s remarks later today.
Indices traded mixed on Thursday as traders assessed new inflation data and awaited comments from Federal Reserve Chair Jerome Powell.
The S&P 500 and Dow Jones Industrial Average were nearly flat, while the Nasdaq rose slightly. Bond yields fell as another dovish inflation report further opened the door to another rate cut in December. The 10-year Treasury yield fell three basis points to 4.418%.
The producer price index showed total sales prices rose 0.2% in October, the Bureau of Labor Statistics reported Thursday.
The reading was in line with expectations, but showed that inflation remains somewhat sticky, as the annual increase was 2.4%.
The core PPI, which excludes the most volatile food and energy prices, rose 0.3% on the month and 3.1% year over year.
Investors will hear remarks from Federal Reserve Chair Jerome Powell on Thursday at 3 p.m. ET.
His comment will follow the Federal Reserve’s 25 basis point interest rate cut last week, as traders listen for clues about what the path will look like after this year.
Donald Trump’s election victory has stoked fears that inflation could rise again under his proposed policies, such as sweeping tariffs and immigration crackdowns, which could throw the Federal Reserve off its easing path, analysts say. economists.
Traders expect the central bank to cut another 25 basis points at its December meeting before pausing in January, according to the CME FedWatch tool.
Meanwhile, data on Thursday showed that weekly jobless claims fell to their lowest level since May, falling to 217,000 last week, a decrease of 4,000 from the previous week.
Here’s where the US indices stood shortly after the 9:30 a.m. opening bell on Thursday:
Here’s what else is happening:
-
Nvidia shares are up 25% as iPhone time with its Blackwell chip approaches, analyst says.
-
Robinhood adds tokens to its platform as enthusiasm for cryptocurrencies rises after the election.
-
Exposure to stocks hits 11-year high as investors expect U.S. stocks to be the best-performing asset in 2025, according to a BofA survey.
-
The Russian economy is headed for a fate worse than recession, pro-Kremlin economists say.
In commodities, bonds and cryptocurrencies:
-
Oil futures rose. West Texas Intermediate crude rose 1.2% to $69.27 a barrel. Brent crude, the international benchmark, rose 1.1% to $73.11 a barrel.
-
Gold fell 0.7% to $2,569.10 an ounce.
-
The 10-year Treasury yield fell three basis points to 4.418%.
-
Bitcoin rose to $91,466.
Read the original article on Business Insider