The Nasdaq and other major American stock market indices increased Thursday, stimulated by a solid rally in Tesla and Nvidia shares. Investors reacted positively to the latest inflation data, which showed a smaller than expected increase in producers’ prices, which highlights concerns about the aggressive interest rate increases in the American federal reserve.
The NASDAQ composite jumped 1.5%, the S&P 500 gained 1.04%and the industrial average of Dow Jones increased by 0.77%.
Tesla’s shares jumped 5.21%, while Nvidia climbed 3.29%, helping to lift the larger market. Apple also saw a gain of 1.68%, contributing to positive impetus.
The producer prices index (PPI) for final demand increased by 0.4% in January, following an increase up 0.5% in December. This was slightly higher than the forecasts of economists by 0.3%, but investors considered data as a sign that inflationary pressures can stabilize.
In 12 months to January, the PPI increased by 3.5%, compared to 3.3% in December. Although the data has shown that inflation remains present, the revisions of previous months have indicated that past inflation may have been higher than the previous estimate.
“The revisions have indicated higher inflation in the past, which means that today’s unexpected inflation number is low in comparison,” said Kim Forrest, investment director at Bokeh Capital Partners.
Bond yields reacted to inflation data, the 5 -year -old American treasury yield falling to 4.55%. Lower bond yields often make stock more attractive for investors.
Before the report of inflation, merchants thought there were almost 60% chance that the American federal reserve has stable interest rates until July. After the version of the data, this probability fell to 52%, showing a certain uncertainty as of the central bank can start to reduce rates.
Investors looked closely at the economic data to assess the next Fed movements. Wednesday, the report on the Consumer Price Index (ICC) showed the highest prices in almost a year and a half, strengthening the position of the Fed that it will not rush into the decreases of rate .
The price index for personal consumer expenditure (PCE), the preferred measure of inflation of the Fed, also showed strong prices growth in its latest reading. Many analysts believe that if inflation remains high, the Fed can delay lower rate drops longer than expected.
They Stable Labory Remians Labory
In a separate report, the number of Americans depositing unemployment benefits decreased last week, suggesting that the labor market remains solid. A healthy labor market supports consumption spending, which is a key engine of economic growth.
Among the individual actions, NVIDIA increased from $ 4.32 to $ 135.46, Tesla gained $ 17.53 to $ 354.04 and Apple added $ 3.99 to $ 240.86.
Seven of the 11 main sectors of the S&P 500 have ended, led by the discretionary power and the actions of consumer materials.
Meanwhile, some companies had trouble despite the market rally:
Trade Desk dropped by 31.4% after the income forecasts of the advertising technology company for the expectations of analysts in the first quarter.
Deere & Co. fell 3.3% while the agricultural equipment manufacturer said a 35% drop in quarterly income, lacking Wall Street estimates.
On the other hand, some companies have declared solid results:
Cisco Systems won 2.4% after increasing its annual income forecasts.
The Robinhood markets jumped 11.9% while the online trading platform declared better than expected profits in the fourth quarter.
The actions put forward was more numerous than the decreases by a ratio of 2.56 to 1 on the New York Stock Exchange (NYSE) and by a ratio of 1.61 to 1 on the Nasdaq.
The S&P 500 has recorded 21 new 52 -week and seven new sums, while the Nasdaq Composite saw 63 new heights and 38 new stockings.