Hotter-Than-Expected PPI Doesn't Deter Bulls: Yields Fall As Economists Spot Inconsistencies
Portfolio Pulse from Piero Cingari
The Producer Price Index (PPI) has surged upwards, indicating a resurgence in price pressures and fuelling the battle against inflation. Despite this, investors do not seem overly concerned. The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) rallied by 1.4%, while the U.S. Dollar Index (DXY) declined by 0.4%. Stocks continued their upward momentum, with the S&P 500 Index, tracked by the SPDR S&P 500 ETF Trust (NYSE:SPY), gaining 0.2%, and the Invesco QQQ Trust (NASDAQ:QQQ) rising by 0.4%. The Energy Select Sector SPDR Fund (NYSE:XLE) was the weakest performer among all S&P 500 sectors, down by 1.6%.
October 11, 2023 | 2:53 pm
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POSITIVE IMPACT
The Invesco QQQ Trust (NASDAQ:QQQ) rose by 0.4%.
The rise in QQQ indicates that investors are still bullish on tech stocks despite the surge in PPI.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The S&P 500 Index, tracked by the SPDR S&P 500 ETF Trust (NYSE:SPY), gained 0.2%.
The rise in SPY indicates that investors are still bullish on the overall market despite the surge in PPI.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) rallied by 1.4%.
The rise in TLT indicates that investors are seeking safe havens despite the surge in PPI.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The Energy Select Sector SPDR Fund (NYSE:XLE) was the weakest performer among all S&P 500 sectors, down by 1.6%.
The drop in XLE indicates that investors are bearish on the energy sector amid the surge in PPI.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80