Last Updated: 4:13 PM EST
Stock indices finished today’s trading session mixed as traders tried to figure out the Federal Reserve’s next move after the May Producer Price Index (PPI) came in cooler than expected. In fact, PPI fell by -0.2% on a month-over-month basis compared to the 0.1% rise economists had predicted. On a year-over-year basis, PPI increased by 2.2%, below the expected 2.5%.
Core PPI, which excludes food and energy prices, also slowed down, with the monthly and yearly figures coming in at 0% and 2.3%, respectively. Analysts had expected a 0.3% increase for the former and a 2.4% jump for the latter.
This boosted hopes that the Fed might start cutting rates this year, especially since the Federal Reserve expects to cut interest rates once this year, according to yesterday’s summary of economic projections. Indeed, the CME FedWatch Tool shows that investors are now pricing in a 61% chance of a rate cut happening in September compared to yesterday’s 59% and last week’s 55%.
As a result, the Nasdaq 100 (NDX) and the S&P 500 (SPX) gained 0.57% and 0.23%, respectively. Meanwhile, the Dow Jones Industrial Average (DJIA) fell 0.17%.
First Published: 5:03 AM EST
U.S. futures were mixed on Thursday morning following a strong trading session yesterday. Futures on the Nasdaq 100 (NDX) and the S&P 500 (SPX) were up by 0.72% and 0.15%, respectively, at 4:49 a.m. EST, June 13, while the Dow Jones Industrial Average (DJIA) was down 0.28%.
The three major indices ended yesterday’s trading session in the green, with the S&P 500 and Nasdaq Composite indices closing at record highs. The upside came as lower-than-expected U.S. consumer inflation data for May raised hopes for potential interest rate cuts in 2024. Also, the Federal Reserve noted modest progress toward the 2% inflation target, which helped bolster investor confidence.
Today, investors are awaiting the release of the wholesale inflation data represented by the Producer Price Index (PPI). Experts expect PPI to have increased by 0.1% in May, compared to 0.5% growth in April. In addition, Initial Jobless Claims data for the week ended June 7 is scheduled for today.
In major after-market action, Broadcom (AVGO) jumped nearly 13% on better-than-expected Q2 results and a 10-for-1 stock split announcement. On the other hand, Dave & Buster’s (PLAY) dropped about 12% on weak results for the fiscal first quarter. Also, shares of Virgin Galactic (SPCE) plunged 9.6% after the company’s board of directors approved a 1-for-20 reverse stock split.
Moving to corporate earnings, Adobe (ADBE), Signet Jewelers (SIG), and Wiley (WLY) are slated to release results today.
Meanwhile, the U.S. 10-year treasury yield was up at the time of writing, floating near 4.32%. At the same time, WTI crude oil futures trended higher, hovering near $78.31 per barrel as of the last check.
Elsewhere, European markets opened lower today as investors digested the U.S. Federal Reserve’s interest rate decision and key U.S. consumer inflation data.
Asia-Pacific Markets Traded Lower on Thursday
Most of the Asia-Pacific indices closed in the red today as investors evaluated the U.S. inflation data and the Fed’s decision to leave interest rates unchanged.
Japan’s Nikkei and Topix indices finished lower by 0.4% and 0.89%, respectively. Similarly, China’s Shanghai Composite and Shenzhen Component indices ended down by 0.28% and 0.69%, respectively. However, Hong Kong’s Hang Seng index was up 0.97%.
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