Markets Jump as Wholesale Inflation Falls


Key Takeaways

  • An unanticipated decline in the Producer Price Index (PPI) for March sent U.S. stocks higher on April 13, 2023.
  • The Nasdaq posted gains just shy of 2%, while the S&P 500 and the Dow also finished Thursday’s session more than 1% higher.
  • Tech stocks, which benefit from lower borrowing costs, contributed to the day’s advance.

U.S. equities gained as a surprising decline in producer prices boosted optimism that the Federal Reserve might ease back on interest rate hikes to fight inflation. The Dow and S&P 500 were up more than 1%, and the Nasdaq added 2%. It was the first time in a week that all three rose on the same day.

The possibility of lower borrowing costs benefits tech stocks, and they helped power the advance. Amazon (AMZN) shares jumped more than 4% as the company announced a move into artificial intelligence (AI). All the other FAAMG stocks were up also. Shares of Tesla (TSLA), Cisco Systems (CSCO), and Salesforce (CRM) were higher. Shares of American Express (AXP), Visa (V), and other credit card providers were in the green.

SolarEdge Technologies (SEDG) and Enphase Energy (ENPH) were the best-performing stocks in the S&P 500 after HSBC initiated coverage with a buy rating for both, and Deutsche Bank advised clients to pick up Enphase shares. Shares of other solar power companies climbed as well. DISH Network (DISH) shares bounced back after sinking to a 24-year low the previous day that was prompted by an analyst price cut.

Harley-Davidson Sales

Progressive Corporation (PGR) shares tumbled as the insurer reported a loss in March, and quarterly results missed estimates. Shares of Harley-Davidson (HOG) skidded after UBS warned that the motorcycle maker’s first quarter sales could fall short of the lowest expectations. IBM (IBM) shares fell following a report that the tech firm is seeking a buyer for its weather unit, which operates forecasting service IBM and The Travelers Companies (TRV) were the only stocks in the Dow to decline.

Oil futures dropped 1%, while gold prices advanced 1.5%. The yield on the 10-year Treasury note was higher. The U.S. dollar fell against the euro, pound, and yen. Major cryptocurrencies posted solid gains.