Wall Street Rises After PPI Data; Dow Jones Hits Record High
Today, all three major indices are up as the Dow Jones hits a record high, spurred by fresh inflation data. Technology stocks rebounded, reacting to quarterly earnings reports.
The Dow Jones Industrial Average, comprising 30 blue-chip stocks, is up 0.80% at 40,071.75 points. The broader S&P 500 index rose 0.75% to 5,626.38 points, while the tech-heavy Nasdaq Composite gained 0.84% to 18,436.24 points.
Earlier, a slight increase in the Producer Price Index (PPI) was reported, which was insufficient to change expectations that the Federal Reserve will cut interest rates in September, following a surprise decline in consumer prices yesterday.
Producer inflation in the U.S. accelerated slightly in June, with PPI rising 0.2% month-over-month and 2.6% year-over-year, exceeding expectations of 0.1% month-over-month and 2.3% year-over-year. In May, the index was unchanged with a 2.4% annual increase. However, categories within the index saw minimal growth.
The Dow Jones index reached an intraday high of 40,098.99 points, marking its third visit in history above the 40,000 level. According to CME Group’s Fed Watch tool, futures traders see an 88.1% probability of a rate cut in September.
Meanwhile, technology stocks, which saw profit-taking yesterday, are partially recovering today, except for Microsoft (-0.35%) and Alphabet (-0.12%). Tesla shares rose 3.5%, Nvidia gained 2.09%, and Apple’s stock increased by 1.35%.
Sector-wise, gains were led by real estate (+0.7%), while the only losses were seen in the communication sector (-0.55%). Within the Dow Jones, Intel (+1.97%) and Coca-Cola (+1.13%) led the gains this morning.
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