NYSE
gave Dow Jones Industrial Average 195 points or 0.5 percent increase. gave S&P 500 And tech-heavy Nasdaq Composite increased by 0.3% and 0.2% respectively.
Major tech stocks faltered on Tuesday, weighing on the S&P 500 and Nasdaq. Nvidia And Meta platforms Each lost 1% and more. Meanwhile, Palantir And Tesla increased by 2.9% and 1.8% respectively.
The producer price index, which measures wholesale inflation, rose just 0.2 percent in December, the Bureau of Labor Statistics reported. Economists polled by Dow Jones had forecast a 0.4 percent rise. Core PPI, which excludes food and energy, was flat.
Investors are now looking to Wednesday’s consumer price index report to gauge whether the Federal Reserve is managing to push inflation closer to its 2 percent target, prompting the central bank to tighten interest rate policy. It will be easy. According to Dow Jones, economists are forecasting a 0.3 percent increase in headline CPI in December.
“If the CPI comes in hotter than expected, that would certainly be bad news for equity markets because it would mean the Fed is actually going to cut interest rates,” said Sam Stovall, chief investment strategist at CFRA Research. It will be slow.”
Fed funds futures trading ensures that the Fed will hold interest rates steady at the end of its two-day meeting later this month. Market pricing also suggests there is a 77.9% chance rates will remain at their current target range of 4.25%-4.5% in March. CME FedWatch Tool
On the earnings front, the banking behemoth will kick off its fourth-quarter earnings season this week, with JP Morgan Chase, Citigroup, Goldman Sachs And Wells Fargo Posting results on Wednesday. Morgan Stanley And Bank of America Ready to report on Thursday.