MSCI’s gauge of stocks across the globe gained 3.07 points, or 0.39%, to 785.90, and earlier reached an intraday record
MSCI’s gauge of stocks across the globe was set for a record high close on Tuesday, while the U.S. dollar edged down as investors digested U.S. producer prices data and comments from Federal Reserve Chair Jerome Powell.
Major U.S. stock indexes also climbed, with the Nasdaq posting a closing all-time high.
Data showed U.S. producer prices increased more than expected in April amid strong gains in the costs of services and goods, indicating that inflation remained higher early in the second quarter.
Powell, speaking at a banking event in Amsterdam, said the latest report on U.S. producer prices was more “mixed” than “hot” given that prior data was revised lower even as the figures for April came in higher than expected.
The key data of the week, though, will be Wednesday’s U.S. consumer prices report.
Investors have been watching inflation data closely as they weigh how soon the Federal Reserve might cut interest rates.
Higher-than-anticipated consumer prices in the first quarter of the year raised concerns that the Federal Reserve will be unable to lower rates this year unless there is a significant rise in the unemployment rate.
The DJIA gained 126.60 points, or 0.32%, to 39,558.11, and the S&P 500 added 25.26 points, or 0.48%, to 5,246.68. The Nasdaq Composite advanced 122.94 points, or 0.75%, to 16,511.18, surpassing its earlier peak set on April 1.
MSCI’s gauge of stocks across the globe gained 3.07 points, or 0.39%, to 785.90, and earlier reached an intraday record. The STOXX 600 index added 0.15%.
The dollar edged lower after the PPI data.
Sticky inflation looked downright stuck this morning after a much hotter-than-expected inflation data. But with last month’s numbers revised lower, this report may not have been as much of an upside shock as it first seemed to be, according to Chris Larkin, managing director of trading and investing at E*TRADE from Morgan Stanley.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, dropped 0.17% to 105.01, with the euro up 0.26% at $1.0816.
Against the Japanese yen, the dollar firmed 0.16% to 156.45.
