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S&P 500, Nasdaq eye a rebound as stocks rise after PPI inflation data

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US stocks were broadly higher on Tuesday as investors received the first of two major inflation reports this week, which showed prices rising less than expected in December. Also in focus was a report that the incoming Trump administration may gradually raise tariffs to ease inflationary pressures.

The S&P 500 (^GSPC) rose nearly 0.4%, while the Nasdaq Composite (^IXIC) rose 0.6%, both set to rebound from Monday’s losses. Meanwhile, the Dow Jones Industrial Average (^DJI) added 0.4% following a winning day for the blue-chip index.

The Producer Price Index, which tracks price changes seen by businesses at the wholesale level, rose 3.3% from a year ago, compared with 3% in November but less than economists expected. It rose 0.2% compared to the previous month, which was also lower than expected. The report lays the foundation for the consumer inflation reading expected on Wednesday.

Meanwhile, President-elect Donald Trump’s team is considering implementing promised tariff increases month after month rather than imposing higher levels in one move, Bloomberg reported, in an effort to help prevent inflation from rising.

The possibility that Trump’s policies would increase price pressures was worrying markets, because that could limit the Fed’s scope to cut interest rates. But a UBS strategist said gradual tariffs could remain a “problem” for the central bank’s efforts to finish the job of cooling inflation.

DJI – Free real-time quote US dollars

As of 9:46:35 AM EST. The market is open.

^ DJI ^ IX ^ GSBC

Following the tariff report, the dollar (DX-Y.NYB) fell after a five-day winning streak, while the 10-year Treasury yield (^TNX) retreated from 14-month highs that were exploited in Monday’s bond sell-off.

On the corporate front, shares of KB Home (KBH) jumped more than 10% in early trading after the homebuilder’s fourth-quarter earnings beat estimates.

He lives 4 updates

  • Stocks open higher

    Stocks are in recovery mode after the latest inflation data showed prices rose less than expected last month, while investors also took heed New report The Trump administration could gradually raise tariffs amid the battle to reduce inflation.

    The S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) rose about 0.4%, while the Nasdaq Composite (^IXIC) rose about 0.6%.

    DJI – Free real-time quote US dollars

    As of 9:46:35 AM EST. The market is open.

    ^ DJI ^ IX ^ GSBC

  •     Josh Shafer

    The Producer Price Index shows that wholesale inflation rose less than expected in December

    Wholesale prices rose less than expected in December, a positive sign for the economy amid recent market concerns that inflation is not falling as quickly as hoped to the Federal Reserve’s 2% target.

    Tuesday’s report from Bureau of Labor Statistics It showed that the Producer Price Index (PPI) – which tracks price changes seen by businesses – rose 3.3% from a year earlier, up from 3% in November but less than the 3.5% increase that economists had expected. On a monthly basis, prices rose 0.2%, less than the 0.4% increase that economists had expected.

    Excluding food and energy, “core” prices rose 3.5% year-on-year, higher than November’s increase of 3.4%. Economists had expected an increase of 3.8%. Meanwhile, core prices were unchanged month-on-month, less than the 0.3% increase economists had expected and the 0.2% increase seen last month.

  • Jenny McCall

    Good morning. Here’s what’s happening today.

  • Brian Susie

    Goldman Sachs estimates the economic impact of wildfires

    The combined property losses from the Eaton and Palisades fires are on track to top the most destructive wildfires (the Camp Fire in 2018) in California history, the Goldman Sachs team said in a note this morning.

    Insurance losses range between $10 billion and $30 billion, according to Goldman estimates.

    The company’s estimates of the near-term economic impact are as follows:

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