US Stock Indices Rise on Stronger Producer Prices Inflation

US Stock Indices Rise on Stronger Producer Prices Inflation/Reuters

VoM News Desk | May 14, 2024 | 09:09 PM IST | Breaking News | Follow on Google News

US Stock Indices Rise on Stronger Producer Prices Inflation

US Stock Indices Rise on Stronger Producer Prices Inflation

Key Highlights:

1. US producer prices (Producer Price Index) exceeded expectations in April, driven by robust gains in services and goods costs.
2. The Dow Jones Industrial Average, S&P 500, and Nasdaq Composite edged higher ahead of Federal Reserve Chair Jerome Powell’s speech.
3. Tesla shares surged 3%, while meme stocks, including GameStop, continued their rally. Alibaba’s US-listed shares fell 6% after reporting a significant profit drop in the fourth quarter.

US stock indices experienced gains on Tuesday following a report indicating stronger-than-expected producer prices inflation in April. The Producer Price Index rose amid substantial increases in both service and goods costs, setting a positive tone for the market.

At 09:44 a.m. ET, the Dow Jones Industrial Average climbed 0.18% to 39,503.25, the S&P 500 rose 0.11% to 5,226.93, and the Nasdaq Composite gained 0.18% to 16,417.33. Tesla shares surged by 3%, contributing to the overall market optimism.

Meanwhile, meme stocks, exemplified by GameStop, saw renewed interest, reminiscent of the social media-driven frenzy observed three years ago. However, US-listed shares of Alibaba tumbled by 6% after reporting an 86% decline in fourth-quarter profit, dampening investor sentiment.

Federal Reserve Chair Jerome Powell’s scheduled speech at 10:00 a.m. ET added to market anticipation, influencing investors’ sentiment and trading activity. Additionally, oil prices remained steady after OPEC maintained its global oil demand forecasts, while gold prices appreciated as investors awaited crucial inflation data, with spot gold rising to $2,345.39 per ounce.

Source: Mint

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