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
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
