Benzinga
Published Feb 16, 2024 13:35
Updated Feb 16, 2024 14:40
Producer Inflation Outruns Expectations In January, Chills Investor Bets On Fed Rate Cuts
Benzinga - by Piero Cingari, Benzinga Staff Writer.
Price pressures faced by U.S. producers rose more than expected in January, stoking concerns after a stronger-than-expected consumer price index earlier in the week. These developments led traders to adjust their expectations regarding Federal Reserve rate cuts in 2024.
In January, Producer Price Index (PPI) inflation increased by 0.3% month-over-month, rebounding from a 0.1% decrease in December.
January PPI Report: Key Highlights
The higher-than-expected PPI figures for January could prompt a reevaluation of these expectations.
Following the report, Treasury yields and the U.S. dollar experienced slight increases. Specifically, the 10-year yield was trading at 4.33% at 8:35 a.m. Friday in New York.
On Thursday, the S&P 500 index, as tracked by the SPDR S&P 500 ETF Trust (NYSE:SPY), closed at new record highs of 5,038 points.
In Friday’s premarket trading, futures on major U.S. averages flipped to the downside following the higher-than-expected producer inflation report.
Read now: Nasdaq, S&P 500 Futures Rise Ahead Of PPI Data: Analyst Flags Warning Signal That Could Pose Risk To Equity Market Rally
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