Wall Street Rallies After PPI Data; Starbucks Shares Jump 23%
By sector, the technology sector is leading gains with a 2% increase, driven by the PPI data.
U.S. stock averages are rising, led by the Nasdaq, as investors respond to positive inflation figures in the world’s largest economy.
All three major Wall Street indices are trading with gains on Tuesday morning. U.S. stock averages are climbing, with the Nasdaq leading the way as investors react to encouraging inflation data.
The Dow Jones Industrial Average, comprising 30 major companies, is up 0.55% to 39,571.96 points, while the S&P 500, which tracks 500 stocks, has gained 1.09% to 5,402.7 points. The tech-heavy Nasdaq Composite has advanced 1.78% to 17,079.26 points.
The Producer Price Index (PPI) for final demand rose by 0.1% last month, following an unrevised 0.2% increase in June. Economists surveyed by Reuters had predicted a 0.2% rise, and today’s figure is boosting the markets.
The producer price data precedes a key July inflation report in the United States, set to be released tomorrow, Wednesday, which could provide further insights into a potential interest rate cut by the Federal Reserve.
Among individual stocks, Starbucks stands out, with shares surging 23% following the announcement of CEO Laxman Narasimhan’s departure and the appointment of Brian Niccol, President of Chipotle Mexican Grill, as his successor.
By sector, the technology sector is leading gains with a 2% increase, driven by the PPI data, followed by consumer discretionary companies, which are up 0.93%. Within the Dow Jones, Intel (2.31%), Nike (2.3%), and Apple (1.88%) are leading the gains, while Johnson & Johnson is down (-1.79%).
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