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12/07/24
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Wall Street Higher After Slight Rise In PPI
On Friday, Wall Street’s major indexes were higher as higher-than-expected producer price numbers didn’t change bets around an interest rate cut by the U.S. Federal Reserve in September, while investors also evaluated mixed big bank results.
JPMorgan Chase’s profit for the second quarter increased after being boosted by an accounting gain of $8B from a deal with Visa and rising investment banking fees. Shares of the biggest bank in the world dropped 1.9%.
Wells Fargo slipped 6.9% as it missed estimates for quarterly income from interest, while Citigroup dropped 2.8% although it posted gains in its services division and a surge in investment banking revenue.
The S&P 500 banks index lost 2.2% and the Financials Index shed 0.2%.
After Thursday’s data showed an unexpected drop in U.S. consumer prices, producer prices in June increased slightly, confirming a downtrend in inflation.
According to CME Group’s FedWatch tool, traders see a 96% probability of a rate cut in September, up from 77.7% the prior week.
In a mixed megacap session, Meta Platforms shed 2%, while Apple rose 1.5%.
The Nasdaq Composite was up 125.94 points, or 0.69%, at 18,409.35, the S&P 500 was up 25.29 points, or 0.45%, at 5,609.83, and the Dow Jones Industrial Average was up 81.85 points, or 0.21%, at 39,835.60.
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