US Markets on October 11: Dow Jones and Nasdaq Surge Despite Higher PPI Data
US Markets LIVE 11 Oct 2023: The US stock market indexes opened higher on Wednesday, as Treasury yields continued to decline after several Fed officials hinted that the central would pause interest rate hikes in the next meeting.
Dow Jones opened higher by 82.9 points at the 33822.20 level, while the S&P 500 made a positive opening of 8.35 points at the 4366.59 level. The Nasdaq Composite index also made a higher opening of 56.37 points at the 13619.21 level.
US Markets Live Today
At 11.55 a.m. EDT, The US stock market indexes trimmed their early gains, Dow Jones turned negative and is trading lower by just 7.34 points or 0.02 percent at the 33731.96 level while the S&P 500 is trading positive, up by 3.54 points or 0.08 percent at 4361.78 levels. The tech-heavy Nasdaq Composite index is trading higher by 51.46 points or 0.38 percent at 13614.31 levels.
US Market News
The US stock markets rose on Wednesday despite the higher-than-expected producer price index (PPI) inflation reading for September. Investors shook off fresh inflation data, as several Fed officials already made dovish comments recently, which fueled hopes the central bank is nearing the end of its interest rate hikes.
However, the key indexes now trimmed some early gains, as investors are now looking out for the Fed’s minutes of the last meeting, which is due later in the day for further confirmation on the interest rate hike path.
According to the Labor Department, the PPI rose 0.5% in September, the data came higher than the expectation of 0.3%, while the Core PPI i.e. excluding food and energy, prices were up 0.3% as against 0.2% estimated.
The market sentiments remained upbeat, as Treasury yields continued to move southwards, despite the higher PPI inflation reading. The 10-year Treasury yield declined 6 basis points to 4.59%, it was settled at 4.664% on Tuesday.
Stocks in News Today
Shares of dialysis services providers DaVita and Fresenius Medical Care tanked 19% and 17.9% respectively after the news of Ozempic’s success in Novo Nordisk’s kidney disease treatment trial. The share price of Novo Nordisk is gaining above 5%.
The shares of Plug Power gained nearly 3% after the battery company projected a sharp rise in revenue by 2027 to roughly $6 billion, according to a regulatory filing.
Investors cheered the largest merger of the year, as Exxon Mobil has agreed to purchase rival Pioneer Natural Resources for $59.5 billion in an all-stock deal. The share price of Exxon Mobil is trading lower by about 4.5% while Pioneer’s share is gaining 0.76%.
Crude Oil Prices
The crude oil prices fell on Wednesday, as traders’ fear of disruption in oil supply due to the Israel and Hamas war receded a day after top OPEC producer Audi Arabia pledged to stabilize the market.
Both the benchmarks rose more than 4% on Monday on concerns about the disruption of the oil supply, after the conflicts escalated between Israel and Palestine.
Crude prices slightly came down on Tuesday after Saudi Arabia said it was working with regional and with regional and international partners to prevent an escalation, and reaffirmed it backed efforts to stabilize the oil markets.
The US WTI crude is trading lower by 2.62% at $83.67 per barrel while London-based Brent crude oil is down by 2.20% at $85.72 per barrel.
US Markets at Close
The US stock market indexes ended higher on Wednesday, as investors shrugged off higher-than-expected producer price index (PPI) data and looked ahead to the CPI inflation data due on Thursday for further guidance on the interest rate hike path. The Fed’s minutes of the last meeting released on Wednesday, showed that most members backed further interest rate hikes until the inflation is heading back to 2%.
The major US stock market indexes Dow Jones and S&P 500 gained 0.19 percent and 0.43 percent respectively while Nasdaq was up by 0.71 percent at the close.
Also, read- Global Stock Markets: Dow and Nasdaq Futures, PPI Inflation, and the Fed’s Influence
Stock Market Prediction Next Week (9- 13 Oct 2023)
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