U.S. stock futures rallied Tuesday morning after the producer price index for October came in lower than expected. The PPI index slowed to 8% from 8.4% in the 12 months through October, while core price growth slowed to 5.4% from 5.6%. Futures for the S&P 500 rose 78 points, or 2%, to 4,045, while futures for the Nasdaq 100 rose 366 points, or 3.1% to 12,102 after stock futures traded modestly higher before the data. Futures for the Dow Jones Industrial Average rose 405 points, or 1.2% to 33,967. Treasurys also rallied, with Treasury yields falling 9.4 basis points to 3.778%. Treasury yields move inversely to prices. The PPI data, which gauge prices paid by wholesale producers of goods, appeared to mirror a slowdown in consumer-price inflation exhibited by the October CPI released on Thursday. The October CPI report helped to cement expectations that the Federal Reserve will opt for a smaller interest-rate hike in December after four consecutive 75 basis point hikes. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
Read Full Story
- The Tell: Fed’s shrinking of balance sheet via quantitative tightening is ‘a complete mistake,’ says Mizuho - November 28, 2022
- Biden urges Congress to head off potential railroad strike - November 28, 2022
- Dow Jones Newswires: Faraday Future names Xuefeng Chen global CEO after ousting Carsten Breitfeld - November 28, 2022