- Stocks rose on Thursday after another encouraging inflation reading .
- The producer price index slid 0.2% month-to-month, against forecasts of a 0.1% decrease.
- Tesla stock jumped as Elon Musk said on X his pay package was headed for approval.
US stocks continued their rally to record highs on Thursday after investors took in another cooler-than-expected inflation print.
Stocks capped off Wednesday's session at a record, with markets pointing toward fresh all-time highs as trading kicked off on Thursday.
In May, the producer price index slid 0.2% month-to-month, against forecasts of a 0.1% decrease. According to Bloomberg, that marks the largest decline for the wholesale inflation gauge since October. PPI rose 2.2% from a year ago.
"Thursday's weaker-than-expected PPI data is another sign of continued progress on inflation, and it keeps the prospect of a rate cut alive in 2024," said Clark Bellin, Bellwether Wealth chief investment officer.
The PPI report follows similar softness in Wednesday's consumer price index report for May, which prompted hope that the Federal Reserve could have room to cut interest rates this year.
The 10-year Treasury yield continued its slide lower, dropping two basis points to 4.373% after a steep decline on Wednesday following the cooler CPI reading.
Fed officials noted progress on inflation, though interest rates were left unchanged after this week's policy meeting, with one interest rate cut penciled in. However, investors remain more optimistic, expecting two 25-basis point cuts, according to the CME FedWatch Tool.
Tesla stock jumped more than 6% as Elon Musk said on X that his pay $56 billion compensation package was headed for approval by shareholders. Dealbook reported Thursday morning that Vanguard and BlackRock would vote in favor of the pay deal, giving Musk a boost from two of the world's biggest asset managers.
Here's where US indexes stood at the 9:30 a.m. opening bell on Thursday:
- S&P 500: 5,429.86, up 0.16%
- Dow Jones Industrial Average: 38,566.01, down 0.38% (-133.22 points)
- Nasdaq composite: 17,692.39, up 0.48%
Here's what else is going on today:
- GameStop could make more money than in recent quarters just by sitting on its $4 billion cash pile.
- The worst stock crash since 1929 is coming after a brief rally in the S&P 500, 'black swan' investor warns.
- A new South African policy is being hailed as the first national universal basic income program — it's not, experts say.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil ticked down 0.24% to $78.09 a barrel. Brent crude, the international benchmark, inched up 0.16% to $82.73 a barrel.
- Gold slid 0.20% to $2,318.42 per ounce.
- The 10-year Treasury yield dropped two basis points to 4.373%.
Bitcoin fell 1.8% to $68,071.62.