US stocks are seeing a bit of a retreat this morning, following yet another hotter than expected inflation reading, the producer price index. This data is certainly making the case for interest-rate cuts less compelling.
S&P 500 futures are down 0.2% after reaching another record closing high, while Dow Jones Industrial Average futures have dipped 0.3%. On the other hand, contracts on the tech-heavy Nasdaq 100 are showing a slight uptick.
The producer price index, a crucial measure of wholesale inflation, saw a significant jump of 0.3% in January compared to the prior month. This exceeded the 0.1% rise that economists had anticipated.
This week has been quite a rollercoaster for the market. Mixed data points have left investors constantly reassessing their outlook on the US economy, Federal Reserve policy, and the potential timing of interest rate adjustments. Just yesterday, the Dow experienced a 500-point drop right after hitting an all-time high, triggered by a surprisingly high consumer inflation report.
Despite the volatility, stocks are managing to recover from earlier losses, especially following a sharp decline in retail sales. This puts the Dow and the S&P 500 on track for potential weekly gains.
Turning to earnings-related news, Coinbase shares are soaring over 14% in premarket trading after the crypto exchange reported its first quarterly profit in two years. Investors are clearly pleased with this turnaround. Similarly, Applied Materials stock is on the rise after the company’s forecast indicated a potential rebound in the chip sector.
The unexpected surge in the producer price index has injected a new wave of uncertainty on the stocks, prompting investors to closely monitor upcoming developments and their potential impact on market dynamics. It’s shaping up to be an interesting day in the markets, so stay tuned as we navigate through the latest developments and keep you updated on all the key movements.
