New York: US stock Recent gains ended with gains on Thursday nasdaq The increase was more than 1% for the second day in a row, as data showed the annual increase in US producer inflation was the lowest in nearly three years.
The data provided further evidence that inflationary pressures are easing. Wednesday’s CPI report showed US consumer prices posted the smallest annual increase in more than two years.
The reports have helped support the view that the Federal Reserve will hold off on raising rates after an expected 25 basis point rate hike later this month.
“The PPI this week is another confirmation that inflation is moving in the right direction, even as we continue to see improving overall labor market and consumer data. This is a good sign,” said Mona Mahajan, senior investment strategist at Edward Jones.
In the 12 months to June, the producer price index climbed 0.1%. This was the smallest year-on-year gain since August 2020 and followed a 0.9% increase in May.
Technology-related stocks provided the most support to the S&P 500, and an index of tech-focused stocks including megacaps gained 2.7% and hit a record high.
Dow Jones The industrial average rose 47.71 points, or 0.14%, to 34,395.14, the S&P 500 rose 37.88 points, or 0.85%, to 4,510.04 and the Nasdaq Composite rose 219.61 points, or 1.58%, to 14,138.57.
US chip stocks also rose, with Nvidia hitting record highs during the session and the Philadelphia Semiconductor index rising 2%.
Undercutting some of the day’s upbeat tone, a separate report showed that weekly jobless claims unexpectedly declined last week, indicating the labor market remains tight.
The focus is also shifting to the second quarter US earnings session starting this week. Shares of JPMorgan Chase closed up 0.5% ahead of upcoming quarterly results before the opening bell on Friday.
“We may have another quarter here where the positive sentiment will continue,” said Allen Lanz, president of Allen B. Lanz & Associates Inc. in Toledo, Ohio.
“As long as expectations and guidance are consistent, a lot of institutional investors will be paying attention.”
Delta Air Lines closed nearly flat after news it raised its full-year profit outlook, citing a continued travel boom following the pandemic.
PepsiCo shares jumped 2.4% after the company raised its annual revenue and profit forecast for the second time.
Among other gainers on the day, shares of Google parent company Alphabet Inc rose 4.7%. It said it is launching its artificial-intelligence chatbot Bard in Europe and Brazil, downplaying concerns about overseas regulatory issues.
Strategists said the recent weakness in the US dollar could be positive for the US multinationals for future earnings.
Volume on US exchanges stood at 10.82 billion shares compared to an average of 11.11 billion for the entire session in the last 20 trading days.
Advancing issues outnumber declining issues on the NYSE by a 2.90-to-1 ratio; On the Nasdaq, a 1.93-to-1 ratio favored the advancers.
The S&P 500 posted 51 new 52-week highs and one new low; The Nasdaq Composite hit 135 new highs and 39 new lows.
The data provided further evidence that inflationary pressures are easing. Wednesday’s CPI report showed US consumer prices posted the smallest annual increase in more than two years.
The reports have helped support the view that the Federal Reserve will hold off on raising rates after an expected 25 basis point rate hike later this month.
“The PPI this week is another confirmation that inflation is moving in the right direction, even as we continue to see improving overall labor market and consumer data. This is a good sign,” said Mona Mahajan, senior investment strategist at Edward Jones.
In the 12 months to June, the producer price index climbed 0.1%. This was the smallest year-on-year gain since August 2020 and followed a 0.9% increase in May.
Technology-related stocks provided the most support to the S&P 500, and an index of tech-focused stocks including megacaps gained 2.7% and hit a record high.
Dow Jones The industrial average rose 47.71 points, or 0.14%, to 34,395.14, the S&P 500 rose 37.88 points, or 0.85%, to 4,510.04 and the Nasdaq Composite rose 219.61 points, or 1.58%, to 14,138.57.
US chip stocks also rose, with Nvidia hitting record highs during the session and the Philadelphia Semiconductor index rising 2%.
Undercutting some of the day’s upbeat tone, a separate report showed that weekly jobless claims unexpectedly declined last week, indicating the labor market remains tight.
The focus is also shifting to the second quarter US earnings session starting this week. Shares of JPMorgan Chase closed up 0.5% ahead of upcoming quarterly results before the opening bell on Friday.
“We may have another quarter here where the positive sentiment will continue,” said Allen Lanz, president of Allen B. Lanz & Associates Inc. in Toledo, Ohio.
“As long as expectations and guidance are consistent, a lot of institutional investors will be paying attention.”
Delta Air Lines closed nearly flat after news it raised its full-year profit outlook, citing a continued travel boom following the pandemic.
PepsiCo shares jumped 2.4% after the company raised its annual revenue and profit forecast for the second time.
Among other gainers on the day, shares of Google parent company Alphabet Inc rose 4.7%. It said it is launching its artificial-intelligence chatbot Bard in Europe and Brazil, downplaying concerns about overseas regulatory issues.
Strategists said the recent weakness in the US dollar could be positive for the US multinationals for future earnings.
Volume on US exchanges stood at 10.82 billion shares compared to an average of 11.11 billion for the entire session in the last 20 trading days.
Advancing issues outnumber declining issues on the NYSE by a 2.90-to-1 ratio; On the Nasdaq, a 1.93-to-1 ratio favored the advancers.
The S&P 500 posted 51 new 52-week highs and one new low; The Nasdaq Composite hit 135 new highs and 39 new lows.