US Stocks Set To Extend Gains For Fourth Day As Investors Digest Latest Economic Data
While the Dow Jones Industrial Average was trading 0.35% lower, S&P 500 and Nasdaq Composite fell 0.17% and 0.04% respectively.
US stocks are set to rise for the fourth consecutive day after traders assessed economic data, including unexpected inflation readings from last month, following a volatile trading session on Wednesday.
The S&P 500 rose 0.7% as of 2:12 pm ET, while the Dow Jones Industrial Average and Nasdaq Composite rose by 0.4% and 1%, respectively.
That comes after the Producer Price Index data, which released on Thursday rose by 0.2% in August, surpassing the anticipated 0.1% increase. The core PPI, which excludes volatile food and energy prices.
This 0.2% monthly gain in the PPI follows a downward revision of July’s figures, which were initially expected to show a 0.1% increase according to Bloomberg’s median forecast.
This came after the core inflation data unexpectedly exceeded expectations, rising last month. The core consumer price index, excluding food and energy costs, increased by 0.3% from July and 3.2% from the previous year.
"Headline PPI inflation came in as expected, but the core rate followed the consumer's core rate almost to the tee, a little bit more than expected," Peter Cardillo, chief market economist at Spartan Capital Securities told Reuters.
The Federal Reserve's shift from inflation to employment meant that yesterday's CPI report received less attention than usual, and many traders were unaware of the PPI report on Thursday, Bloomberg News reported on Thursday quoting Bespoke Investment Group strategists as saying.
Among the notable market movers, Moderna shares dropped 17% to their lowest level in over 10 months as the company plans to cut its research and development budget by nearly 20% over the next three years.
Delta shares rose by 5.1% following an update on its profit guidance. The company now expects its full-year profit to meet or exceed the midpoint of its previous guidance.
US 10-year yields increased by one basis point to 3.73% in the morning. Meanwhile, Brent crude oil prices climbed towards $72 per barrel after a 1.52% gain on Thursday.
