A report from the Labor Department showed that producer prices fell unexpectedly in March as the cost of gasoline fell, and there were signs that underlying production inflation was subsiding.
The US stock indices they went up on Thursday, since the inflation moderation producer prices and rising weekly jobless claims eased fears about the Federal Reserve raising interest rates to curb price escalation.
The Nasdaq Composite rises up to 1.2% to 12,083.48 points; the S&P500 index rose 0.6% to 4,118.39 and the Dow Jones Industrial Average rose 0.4% to 33,800.39 points.
A report from the Labor Department showed that producer prices fell unexpectedly in March as the cost of gasoline fell, and there were signs that underlying production inflation was subsiding. Another report showed that the number of Americans filing new claims for unemployment benefits rose more than expected last week, another sign that labor market conditions are easing.
“This is a good sign that inflation is easing and coming down quite sharply. Jobless claims were also good news for the Fed Reserve,” said Peter Cardillo of Spartan Capital Securities in New York.
“Inflation, both at the consumer and producer levels, is coming down, in the right direction…although elevated, it’s still good news and this is a big consideration in terms of the Fed ending its hardening cycle”he added.
US Treasury yields fell, boosting rate-sensitive growth stocks such as Apple Inc, Amazon.com Inc and Alphabet Inc, which rose nearly 2%. The industrial, financial and energy sectors, sensitive to the economy, gave up some of their recent gains.
Source: Ambito
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