The S&P 500 gained 0.16 per cent, to end at 4,502.88, while the Nasdaq Composite edged up 0.07 per cent and closed at 14,103.84, the Dow Jones Industrial Average gained 0.47 per cent, to end at 34,991.21
Stocks jumped on Wednesday, building on the strong rally from the previous session, on the back of more encouraging inflation data.
The S&P 500 gained 0.16 per cent, to end at 4,502.88, while the Nasdaq Composite edged up 0.07 per cent and closed at 14,103.84. The Dow Jones Industrial Average gained 163.51 points, or 0.47 per cent, to end at 34,991.21.
The yield on the benchmark 10-year U.S. Treasury advanced 9 bps to trade at 4.537 per cent. The action comes a day after the rate slid below the 4.5 per cent threshold.
October’s producer price index, which measures wholesale prices, dropped 0.5 per cent to mark its biggest monthly decline since April 2020. Not all of the economic data was positive, however, since retail sales also dropped.
Clearly, interest rates are the key driver of this stock market, and the activity today makes sense because PPI was very, very cool, as we had expected, said Jay Hatfield, founder and Chief Executive Officer of Infrastructure Capital Advisors. Today, rates are a little bit higher not because of PPI but because retail sales are a little bit hot relative to expectations.
Wall Street is coming off a strong session in which the S&P 500 and Nasdaq had their best day since April. Those market gains came after the CPI remained flat for October, while a Dow Jones consensus expected a slight rise.
In corporate news, Target rose around 18 per cent on better-than-expected results for the third quarter. Shares of apparel firm V.F. Corp gained 14 per cent after a JPMorgan upgrade to neutral from underweight.