Traders work on the New York Stock Exchange trading floor during early trading on Aug. 12, 2024 in New York City.
Michael M. Santiago | Michael M. Santiago Getty Images News | Getty Images
this Dow Jones Industrial Average Stocks rose on Tuesday, approaching last month’s record levels, following the first of two major U.S. inflation reports this week.
this Dow Chemical Up 394 points, or 1%. this Nasdaq Index rose 2.3%, while the S&P 500 rose 1.5%. The market index is currently down less than 5% from the all-time high set in July.
The producer price index, a measure of wholesale prices, rose 0.1% last month. Economists expected a monthly gain of 0.2% in July, consistent with last month’s data, according to Dow Jones consensus estimates.
Investors were encouraged by PPI ahead of Wednesday morning’s release of the broader consumer price index, which is expected to rise 0.2% month-on-month, up from a 0.1% decline last month. The data could bring some direction to an uncertain market after last week’s wild swings.
“Today’s PPI data is further evidence that the tide of inflation has turned, particularly in the services sector,” said David Russell, head of global market strategy at TradeStation. “Investors who have sold stocks recently in anticipation of lower prices may be frustrated. In the other shoe It didn’t go down.”
The broad market S&P 500 is recovering from a recent bout of volatility.
Tuesday’s rally extends strong gains from late last week, as the market further recovers from the sharp sell-off on August 5. Since the close, the S&P 500 has gained 4.2%.
Volatility has also weakened sharply since then. The CBOE Volatility Index (VIX) hovered below 20 on Tuesday after surging above 65 last week.
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