Traders work on the floor of the New York Stock Exchange on January 10, 2025 in New York City.
new york stock exchange
Stock futures rose on Tuesday after the producer price index, the first of two major inflation reports released this week, was lower than expected.
futures tied to Dow Jones Industrial Average Increased by 107 points (0.2%). S&P500 futures and Nasdaq 100 futures They rose by 0.3% and 0.4%, respectively.
The producer price index, which measures wholesale inflation, rose just 0.2% in December, according to a report from the Bureau of Labor Statistics. Economists polled by Dow Jones had expected a rise of 0.4%. Core PPI, which excludes food and energy, was flat.
Investors are now looking to Wednesday's Consumer Price Index report for insight into the Federal Reserve's next move on interest rate policy.
Chris Brigati, SWBC's chief investment officer, said Tuesday's weakness in PPI was “friendly for the stock market as it helps allay concerns that we are on the brink of accelerating inflation.”
“All eyes are now on Wednesday's CPI report because it will fuel the market's obsession with the Fed,” Brigati said. “Strong inflation indicators further strengthen the idea of no rate cuts or even potential rate hikes in 2025, while weaker inflation indicators may help ease the market's Fed concerns.”
Federal funds futures trading suggests the Fed is almost certain to keep interest rates on hold at the end of its two-day meeting later this month. Market prices suggest there is a 79% chance that interest rates will remain in the current target range of 4.25% to 4.5% in March, the paper said. CME Fed Watch tool.
On the earnings front, the banking giant is set to begin its fourth quarter earnings season this week. JP Morgan Chase, citygroup, goldman sachs and wells fargo We will announce the results on Wednesday. morgan stanley and bank of america A report is expected on Thursday.
