After a sharp reading for the consumer price index Wednesday caused the stock market to crash, the Dow Jones Industrial Average turned higher after the release of another important inflation report, the producer pricing index. In the meantime, the 10-year Treasury yield is almost at its 11-year high from June.
According to the U.S. Labor Department, the producer index, or PPI, decreased 0.1% in August compared to the prior month, in line with expectations. In line with expectations and down from July’s 9.8% increase, wholesale inflation increased by 8.7% from a year earlier.
Due to declining gas prices, the CPI inflation rate decreased to 8.3% on Tuesday from 8.5% in July and 9.1% in June. The monthly change in the consumer price index was 0.1%. The CPI was predicted to show a 0.1% monthly fall, bringing the CPI inflation rate down to 8%, according to Wall Street economists. Even worse, core inflation increased to 6.3% faster than anticipated.
Markets currently estimate that there is a 38% possibility that the Federal Reserve will raise interest rates fully at its upcoming meeting. Wall Street did not give that scenario any chances prior to Tuesday.
Leader in electric vehicles Tesla (TSLA) saw its shares rise 2% on Wednesday. After today’s stock market open, tech giants Apple (AAPL) and Microsoft (MSFT) were up among the Dow Jones industrials. After Berenberg upgraded the company to a buy, Merck (MRK) increased by 0.7%.
Originally posted on investors.com