Update: US Equity Indexes Edge Up After Producer Price Inflation Unexpectedly Drops, Iran Signals Red Sea Disruption
(Updates with index/price moves, macroeconomic/rates data, and company/geopolitical news from the first paragraph.) US equity indexes ground higher following a surprise decline in the wholesale price inflation rate and a signal from Iran that its allies could shut the maritime gateway to the Red Sea. The Nasdaq rose 0.4% to 26,221.4, the S&P 500 climbed 0.3% to 7,564.7, and the Dow Jones Industrial Average advanced 0.3% to 52,643.8 after midday Wednesday. All three gauges briefly traded moderately lower earlier in the session. Communication services and consumer discretionary topped the gainers, while energy led the decliners. The US Producer Price Index fell 0.3% in June following a 0.6% increase in May, below the flat consensus in a Bloomberg-compiled survey. Excluding food and energy, core PPI rose 0.2%, slower than the 0.3% gain expected and a 0.1% rise in May. PPI was up 5.5% year-over-year in June, versus the 6% gain in May, while core PPI climbed 4.7%, up from 4.6% in May. The probability of the Federal Reserve leaving its policy unchanged in July rose to 90% following the PPI data, from 84% a day ago and 69% a week ago, the CME FedWatch tool showed Wednesday. The.
(Updates with index/price moves, macroeconomic/rates data, and company/geopolitical news from the first paragraph.) US equity indexes ground higher following a surprise decline in the wholesale price inflation rate and a signal from Iran that its allies could shut the maritime gateway to the Red Sea.
The Nasdaq rose 0.4% to 26,221.4, the S&P 500 climbed 0.3% to 7,564.7, and the Dow Jones Industrial Average advanced 0.3% to 52,643.8 after midday Wednesday.
All three gauges briefly traded moderately lower earlier in the session.
Communication services and consumer discretionary topped the gainers, while energy led the decliners.
The US Producer Price Index fell 0.3% in June following a 0.6% increase in May, below the flat consensus in a Bloomberg-compiled survey.
Excluding food and energy, core PPI rose 0.2%, slower than the 0.3% gain expected and a 0.1% rise in May.
PPI was up 5.5% year-over-year in June, versus the 6% gain in May, while core PPI climbed 4.7%, up from 4.6% in May.
The probability of the Federal Reserve leaving its policy unchanged in July rose to 90% following the PPI data, from 84% a day ago and 69% a week ago, the CME FedWatch tool showed Wednesday.
The.