Stocks continued their rally on Thursday as producer price data indicated a decrease in inflation and earnings season began.
The S&P 500 (^GSPC) increased by 0.5%, while the Dow Jones Industrial Average (^DJI) rose by 0.3%. The Nasdaq (^IXIC), which is heavily focused on technology stocks, led the gains with a rise of approximately 1%.
On Wednesday, the drop in consumer inflation to a two-year low provided a boost to the markets and put pressure on the dollar.
The June reading for the Producer Price Index (PPI) came in at 0.1%, falling short of expectations. Additionally, data from the Labor Department revealed an unexpected decrease in the number of Americans filing new claims for unemployment benefits last week.
A decrease in inflation could potentially lead the Federal Reserve to ease its rate hike campaign. However, according to the CME FedWatch Tool, most traders still believe there is a greater than 90% chance of a rate increase in July.
The start of earnings season also contributed to the rally. Positive reports from PepsiCo (PEP) and Delta (DAL)…
2023-07-13 08:41:29
Link from finance.yahoo.com
rnrn