Producer Inflation Rise Less Than Expected, Jobless Claims Soar: Thursday's Economic Digest
Portfolio Pulse from Piero Cingari
Producer inflation in the U.S. rose less than expected in May, while jobless claims soared to their highest level since August 2023. The Producer Price Index (PPI) for final demand increased by 2.2% year-over-year, below the anticipated 2.5%. The core PPI saw a 2.3% year-over-year increase. Jobless claims rose by 13,000 to 242,000, exceeding expectations. Market reactions included a fall in the U.S. dollar and Treasury yields, with futures on major U.S. indices higher in premarket trading.
June 13, 2024 | 12:43 pm
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POSITIVE IMPACT
Futures on the Nasdaq 100, tracked by the Invesco QQQ Trust (NASDAQ:QQQ), were higher in premarket trading following the economic data releases.
The lower-than-expected producer inflation and higher jobless claims have improved investor expectations towards the likelihood of rate cuts, boosting Nasdaq 100 futures.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Futures on the S&P 500, tracked by the SPDR S&P 500 ETF Trust (NYSE:SPY), were higher in premarket trading following the economic data releases.
The lower-than-expected producer inflation and higher jobless claims have improved investor expectations towards the likelihood of rate cuts, boosting S&P 500 futures.
CONFIDENCE 85
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
The U.S. dollar index, tracked by the Invesco DB USD Index Bullish Fund ETF (NYSE:UUP), fell as producer inflation rose less than expected and jobless claims soared.
The lower-than-expected producer inflation and higher jobless claims suggest a weaker economic outlook, leading to a fall in the U.S. dollar index.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80