Business
Stocks Rise For A Second Day After Back-To-Back Reports Show Signs Of Softening Inflation
(CTN News) – As investors cheered another better-than-expected inflation report, stocks rose for a second day.
There was a rise of 182 points in the Dow Jones Industrial Average or nearly 0.5%. S&P 500 gained 0.5%, and Nasdaq Composite gained 0.2%.
The July producer price index showed a surprise decline from June, boosting investor sentiment. A Dow Jones survey predicted a 0.2% gain, but the PPI fell by 0.5%. Excluding food and energy, the PPI rose less than expected.
On Wednesday, the consumer price index for July showed an encouraging reading. The CPI came in at 8.5%, a slight drop from the 8.7% expected by Dow Jones analysts.
The Dow Jones Industrial Average jumped 535.10 points, or 1.63%, during Wednesday’s regular trading session. Nasdaq Composite gained 2.89%, its highest close since late April, while the S&P 500 added 2.13%.
Markets will appreciate this as one step forward for inflation, yesterday and today,” said Mona Mahajan, senior investment strategist at Edward Jones.
For markets, we can’t ignore the momentum we’ve seen in the near term, Mahajan said, but she warned that further Fed rate hikes and a softening labor market could limit gains.
Major averages were also boosted by earnings reports. Shares of Disney rose more than 7% after the media giant posted stronger-than-expected subscriber numbers for the last quarter.
Related CTN News
