Stocks Rise as Inflation Data Suggests Fed Rate Cuts
Producer Price Index increases less than expected, boosting market optimism for upcoming consumer inflation report.
Overview
- The S&P 500 and Nasdaq saw gains, with the Nasdaq up 1.5%.
- Treasury yields fell as bond markets reacted positively to the inflation data.
- Starbucks shares surged over 20% after naming Brian Niccol as the new CEO.
- Investors are now focused on the upcoming Consumer Price Index report for further clues on Fed policy.
- Lower inflation readings have increased the likelihood of a significant rate cut by the Federal Reserve in September.