Riding the momentum
Hey team! What began as an uneventful session surprised many traders as the market spent the early morning in consolidation before reaching new range highs. Let’s re-cap today’s session and see what’s next!
Impact Snapshot
Jobless claims inch up to 230,000, but still no sign of rising layoffs
Wholesale inflation eases again, PPI shows, ahead of Fed interest-rate cuts
Market Evaluation
Stocks climbed on Thursday as stronger-than-anticipated producer price data bolstered expectations for a 25-basis point rate cut by the Federal Reserve.
All major groups in the U.S. equity benchmark gained, with both mega-cap and small-cap stocks outperforming the broader market.
A series of weaker employment and economic growth data in recent weeks had led to some speculation about a larger-than-normal 50-basis-point interest rate cut by the Fed.
However, these expectations diminished after Wednesday's inflation report.
The producer price index edged up slightly in August following a downward revision of the previous month's figures, while the categories that contribute to the Fed's preferred inflation measure remained subdued.