Last Updated: 4:25 PM EST
Stock indices finished today’s trading session in the green after a fresh round of inflation data. The Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) gained 0.97%, 0.75%, and 0.58%, respectively.
The producer price index (PPI), which tracks the cost of goods and services, increased by 0.2% in August, which was expected. Meanwhile, core PPI, which excludes food and energy, rose by 0.3%, slightly higher than estimated. When looking at the year-over-year figures, PPI and core PPI climbed by 1.7% and 3.3%, respectively.
In addition, jobless claims for the week jumped to 230,000, which was a bit more than the predicted 227,000. Despite the small rise in prices and jobless claims, the Federal Reserve is expected to cut interest rates by 0.25% at their next meeting and by a full percentage-point rate cut by the end of 2024.
First Published: 3:41 AM EST
U.S. futures traded higher on Thursday morning as investors looked ahead to additional economic data points, including the August Producer Price Index (PPI) and Initial Jobless Claims. Futures on the Nasdaq 100 (NDX), the S&P 500 (SPX), and the Dow Jones Industrial Average (DJIA) were down by about 0.66%, 1.36%, and 1.31%, respectively, at 3:10 a.m. EST, September 12.
The major U.S. indices ended the trading session higher on Wednesday buoyed by a rally in tech stocks. The S&P 500, the Dow Jones, and the Nasdaq Composite gained 1.07%, 0.31%, and 2.17%, respectively.
A key driver of the surge was the August consumer inflation report, which revealed headline prices at a three-year low. While core inflation came in slightly higher than expected, it did not impact investors’ hopes about a potential 25 basis point rate cut by the Federal Reserve at its upcoming meeting.
Moving on, investors will closely watch the August PPI report due today. Economists predict a slight increase in both the headline and core PPI readings. Additionally, the Initial Jobless Claims data for the week ended September 7 is expected to show a decline.
On the corporate earnings front, Kroger (KR) is scheduled to report earnings before the market opens today. Further, Adobe (ADBE) and RH (RH) are slated to release their quarterly results after the close.
Meanwhile, the U.S. 10-year treasury yield was up, floating near 3.67% at the time of writing. Additionally, the WTI crude oil futures are trending higher, hovering near $68.24 per barrel as of the last check.
Elsewhere, European markets opened higher on Thursday as investors awaited the European Central Bank’s (ECB) monetary policy decision due today.
Asia Pacific Markets Traded Mixed on Thursday
Asia-Pacific markets traded mixed today. Japanese stocks led the rally, boosted by a tech-driven rally on Wall Street and a lower-than-expected producer price growth report for August.
At the time of writing, Hong Kong’s Hang Seng index was up 1%. Moreover, Japan’s Nikkei and Topix indices gained 3.41% and 2.44%, respectively. On the other hand, China’s Shanghai Composite and Shenzhen Component indices dropped 0.16% and 0.63%, respectively.
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