Wall St indexes rise as PPI data keeps smaller rate cut in view
Fixes headline to match paragraph 1
August producer prices slightly above estimates
Moderna tumbles after dour FY25 revenue forecast
Indexes up: Dow 0.40%, S&P 500 up 0.70%, Nasdaq up 1.04%
By Sinéad Carew and Shashwat Chauhan
Sept 12 (Reuters) -Wall Street's main indexes rose on Thursday after higher-than-expected producer prices data reinforced expectations for a 25-basis point rate cut by the Federal Reserve, while Moderna slumped following a downbeat revenue forecast.
The producer price index (PPI) for final demand rose 0.2% in August, compared with estimates for0.1% growth. The core number, which strips out volatile food and energy prices, rose 0.3%, higher than the 0.2% forecast.
Separately, initial claims for state unemployment benefits stood at 230,000 for the week ended Sept. 7, in line with estimates.
"You continue to get data indicating that inflation is cooling with the producer prices numbers. Also what we've seen in the last couple of days is a willingness of investors to come in on declines," said Chuck Carlson, CEO of Horizon Investment Services in Hammond, Indiana. "Investors remember those significant reversals so today there's less inclination to go against the buying momentum."
A string of weakening employment and economic growth data over the past few weeks had fueled some bets on a larger-than-usual 50-bps interest rate cut by the Fed.
Those expectations faded after Wednesday's inflation report to a 75% chance the U.S. central bank cuts rates by just 25 bps when it meets on Sept. 17-18, CME's FedWatch Tool showed. It would be the first rate cut since March 2020.
As of 2:11 p.m. ET the Dow Jones Industrial Average .DJI rose 162.35 points, or 0.40%, to 41,024.06, the S&P 500 .SPX gained 39.05 points, or 0.70%, at 5,593.18 and the Nasdaq Composite .IXIC climbed 180.07 points, or 1.04%, to 17,575.60.
Most of the S&P 500 sectors were higher, led by communication services .SPLRCL, which rose1.8%. The weakest sector was real estate .SPLRCR, down 0.04%.
The more economically sensitive small-cap Russell 2000 .RUT meanwhile outperformed, rallying 1.4%.
"There's probably some bargain hunting. Small caps is an area that's lagged all year and they'll tend to be rate sensitive so if rates are coming down that might have a decent impact," said Carlson.
Meanwhile, Moderna's MRNA.O stock wasdown 11.5% after hitting itslowest intraday level since November. It wasthe biggest decliner on the S&P 500 after the vaccine maker forecast sales of $2.5 billion to $3.5 billion next year, below analysts' estimates.
Micron Technology MU.O dropped 3% after a report that Exane BNP Paribas downgraded the chipmaker's shares to "underperform" from "outperform."
Kroger KR.N gained 6% after the supermarket chain beat second-quarter estimates and raised the lower end of its annual sales forecast.
Shares of gold miners jumped as spot gold XAU= hit a record high, with the Arca Gold BUGS index .HUI up 6.3%.
Shares in Warner Bros Discovery WBD.O rose8.9% on newsthat Charter Communications CHTR.O would provide an ad-supported version of Warner's streaming services Max and Discovery+. Charter's shares rose 3%.
Advancing issues outnumbered decliners by a 3.39-to-1 ratio on the NYSE where there were 333 new highs and 39 new lows.
On the Nasdaq, 2,660 stocks rose and 1,461 fell as advancing issues outnumbered decliners by a 1.82-to-1 ratio. The S&P 500 posted 34 new 52-week highs and no new lows while the Nasdaq Composite recorded 68 new highs and 69 new lows.
Reporting by Sinéad Carew in New York, Shashwat Chauhan and Lisa Mattackal in Bengaluru; Editing by Maju Samuel, Shounak Dasgupta and Richard Chang
Aset Terkait
Berita Terbaru
Pengungkapan: Entitas XM Group menyediakan layanan khusus eksekusi dan akses ke Fasilitas Trading Online kami, yang memungkinkan Anda untuk melihat dan/atau menggunakan konten yang tersedia pada atau melalui situs, yang tidak untuk mengubah atau memperluas, serta tidak mengubah atau memperluas hal tersebut. Akses dan penggunaan ini selalu sesuai dengan: (i) Syarat dan Ketentuan; (ii) Peringatan Risiko; dan (iii) Pengungkapan Penuh. Oleh karena itu, konten disediakan hanya sebagai informasi umum. Anda juga harus ketahui bahwa konten Fasilitas Trading Online kami bukan sebagai ajakan atau tawaran untuk untuk melakukan transaksi apa pun di pasar finansial. Trading di pasar finansial mana pun melibatkan tingkat risiko yang signifikan pada modal Anda.
Semua materi yang diterbitkan di Fasilitas Trading Online kami hanya untuk tujuan edukasi/informasi dan tidak boleh mengandung nasihat dan rekomendasi finansial, pajak investasi atau trading, catatan harga trading kami, penawaran, permintaan, transaksi dalam instrumen finansial apa pun atau promo finansial untuk Anda yang tidak diminta.
Konten pihak ketiga apa pun, serta konten yang disiapkan oleh XM, seperti opini, berita, riset, analisis, harga, informasi lain atau link ke situs pihak ketiga yang tersedia "sebagaimana adanya", sebagai komentar pasar umum dan bukan menjadi nasihat investasi. Sejauh konten apa pun ditafsirkan sebagai penelitian investasi, Anda harus memperhatikan dan menerima bahwa konten tersebut tidak dimaksudkan dan belum disiapkan sesuai dengan persyaratan hukum yang dirancang untuk mempromosikan kemandirian riset investasi dan dengan demikian akan dianggap sebagai komunikasi pemasaran di bawah hukum dan peraturan yang relevan. Mohon dipastikan bahwa Anda telah membaca dan memahami Notifikasi pada Riset Investasi Non-Independen dan Peringatan Risiko kami mengenai informasi di atas, yang dapat diakses disini.
