Wall Street took a breather on Friday in response to a robust producer inflation report, surprising many and echoing the recent strong consumer inflation report. The Producer Price Index (PPI) for January 2024 saw a 0.3% month-over-month increase, exceeding the projected 0.1% surge. Similarly, the Consumer Price Index (CPI) surged by 3.1% year-on-year, surpassing the forecasted 2.9%.
This new data highlights the ongoing intensity of the inflation battle. “The January inflation data vindicates the Fed’s wait-and-see approach,” noted Bank of America economist Stephen Juneau.
As a result, traders adjusted their expectations for Fed rate cuts, postponing the anticipated start to this summer. Yields surged higher, with the policy-sensitive two-year note yield climbing by over 10 basis points to reach 4.67%.
As of noon trading in New York, the S&P 500 showed minimal change for the day, while the tech-heavy Nasdaq 100 lagged behind, potentially ending a five-week winning streak. A similar trend was observed with both Microsoft Corp. (MSFT) and Amazon.com Inc. (AMZN).
Performance in Major Indices, ETFs
| Major Indices & ETFs | Price | 1-day % chg |
| S&P 500 | 5,020.44 | -0.2% |
| Dow Jones | 38,675.17 | -0.3% |
| Nasdaq 100 | 17,749.70 | -0.5% |
| Russell 2000 | 2,044.70 | -0.9% |
The SPDR S&P 500 ETF Trust (SPY) was 0.2% lower to $500.96, the SPDR Dow Jones Industrial Average (DIA) fell 0.3% to $386.90, and the tech-heavy Invesco QQQ Trust (QQQ) fell 0.5% to $432.16, according to Benzinga Pro data.
The Consumer Staples Select Sector SPDR Fund (XLP) outperformed, up 0.5%, while the Communication Services Select Sector SPDR Fund (XLC) was the laggard, down 1.4%.
Stock Movers
- Bio-Rad Laboratories Inc. (BIO) rose over 7%, marking the largest one-day rise among S&P 500 stocks after the company released stronger-than-expected results last quarter.
- Digital Realty Corp. Inc. (DLR) fell 7.6% after fourth-quarter results missed projections.
- Other companies reacting to earnings were Applied Materials Inc. (AMAT), up 7%, Vulcan Materials Company (VMC), Kinsale Capital Group Inc (KNSL), The Trade Desk Inc. (TTD), Coinbase Global Inc. (COIN), Toast Inc. (TOST), ShockWave Medical Inc. (SWAV), Roku Inc. (ROKU), Dropbox Inc (DBX), and DoorDash Inc. (DASH).
Read now: “Roku Stock Down 22% Despite ‘Almost Perfect Quarter’: Analyst Expects Stock To Be ‘Range-Bound Until Platform Growth Returns’
Illustration created using artificial intelligence via MidJourney.
