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Stock market today: US stocks climb as wholesale inflation data shows big cooldown in prices

A smiling trader on the floor of the New York Stock Exchange.
Traders work on the floor of the New York Stock Exchange.Spencer Platt/Getty Images
  • Stocks rose Thursday after another encouraging inflation reading.

  • The producer price index slid 0.2% month over 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 over 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," Clark Bellin, Bellwether Wealth's chief investment officer, said.

The PPI report follows similar softness in Wednesday's report on the consumer price index for May, which prompted hope that the Federal Reserve has 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 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 $56 billion compensation package was headed for shareholder approval. 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:

Here's what else is going on today:

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 an ounce.

  • The 10-year Treasury yield dropped two basis points to 4.373%.

  • Bitcoin fell 1.8% to $68,071.62.

Read the original article on Business Insider