Stocks Up as Market Prepares for CPI Inflation Data
Stock market indices are up today ahead of new CPI data for August that will help determine if the Fed will issue a new interest rate cut.
Quick overview
- Stock indices are up as investors anticipate the August CPI data release and a potential interest rate cut.
- The Nasdaq Composite has risen by 0.30%, while the S&P 500 and Dow Jones remain flat after reaching record levels.
- Oracle's stock has surged over 35%, contributing positively to the Nasdaq, while Opendoor Technologies has seen a 30% jump despite a slight pullback.
- Apple's stock has declined by 4% following the launch of the iPhone 17, raising concerns about the lack of groundbreaking features.
Stock indices are up today as the August CPI data is about to release. This week’s PPI report came in better than expected and gave the market a boost already.
Inflation data is still rolling out for August, with the big hitter- the CPI report- scheduled for Thursday. The Nasdaq Composite is up 0.30%, while the S&P 500 and Dow Jones indices remain flat after rising to record levels this week. Their elevated status bodes well for the market and the state of the economy as the August CPI report is about to be released.
Instead of dreading the Consumer Price Index, the market is ticking up in anticipation. Wednesday’s PPI report showed that producer prices slightly declined instead of increasing as expected, giving investors reasons to hope for a new interest rate cut. If these key inflation indicators both show positive movement, then the Fed is far more likely to issue a rate cut next week and perhaps a second cut before the end of the year.
Tech Stocks Perform Well
Oracle (ORCL) is one of the big winners this week after climbing rapidly on Wednesday. The AI stock is up more than 35% and has helped to keep the Nasdaq index looking good this week. The company saw their best trading day since 1992 this week, which came right on the heels of announcing briefly that the net worth of co-founder Larry Ellison was greater than that of Elon Musk.
Opendoor Technologies (OPEN) is also performing well today. The company just named a new CEO, and their 30% jump on Wednesday is already seeing a small pullback. The stock fell 4% in premarket trading for Thursday, the company has held onto most of their stock gains this week.
One tech stock that is surprisingly not doing very well is Apple (APPL). The company launched their iPhone 17 this week and saw their stock decline 4%. We speculate that the stock has fallen despite the new product launch because Apple had nothing groundbreaking to give its customers. The new iPhone debuted at $1,099, which is $100 more than the previous iteration. There is concern among its investors that they have little new to offer and may be coasting on their customers’ goodwill.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save