Producer Inflation Falls To 35-Month Low, Jobless Claims Rise Less Than Expected, Bolstering Hopes For Single Fed Hike
Portfolio Pulse from Piero Cingari
The Producer Price Index (PPI) for final demand rose by 0.1% in June, below the expected 0.2% rise. This is the lowest annual PPI inflation rate since August 2020. The Department of Labor reported a lower-than-expected increase in weekly unemployment claims, confirming a healthy labor market. These data releases support market expectations for the Federal Reserve to raise interest rates once this month. Futures on the S&P 500 Index, tracked by the SPDR S&P 500 ETF Trust (NYSE:SPY), were 0.3% higher ahead of Wall Street opening bells.
July 13, 2023 | 12:49 pm
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POSITIVE IMPACT
The SPDR S&P 500 ETF Trust (NYSE:SPY) is likely to be positively impacted by the lower-than-expected PPI and unemployment claims, as these data releases support market expectations for a single Federal Reserve rate hike this month.
The lower-than-expected PPI and unemployment claims data releases are likely to bolster market confidence, leading to a positive impact on the S&P 500 Index, which is tracked by the SPDR S&P 500 ETF Trust (NYSE:SPY). This is because these data releases support market expectations for a single Federal Reserve rate hike this month, which is generally seen as a positive signal for the stock market.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80