The latest inflation data has had a significant impact on the stock market, causing fluctuations in major indices and influencing investor sentiment. The Dow Jones Industrial Average, S&P 500, and Nasdaq all experienced notable movements as investors reacted to the new economic information.

Key Takeaways

• The Dow Jones Industrial Average rose 0.2% after the release of the inflation data.
• The S&P 500 climbed 0.4%, while the Nasdaq composite advanced 0.7% in morning action.
• Tesla stock reversed early losses to rally 1.8% after a downgrade to sell from UBS.
• The Producer Price Index (PPI) rose 0.2% for June, with a year-over-year increase of 2.6%.
• Citibank, JPMorgan Chase, and Wells Fargo were key earnings movers, with mixed results.

Market Reactions to Inflation Data

The release of the latest inflation data had a mixed impact on the stock market. The Dow Jones Industrial Average rose 0.2%, while the S&P 500 climbed 0.4%. The tech-heavy Nasdaq composite advanced 0.7% in morning action. Early Friday, the 10-year Treasury yield ticked higher to 4.2%, and oil prices climbed after recent losses.

Tesla and Other Key Stocks

Tesla stock reversed from early losses to rally 1.8% after UBS downgraded shares to sell from neutral but raised its price target. On Thursday, Tesla stock had plunged more than 8%, snapping an 11-day win streak. Other notable stocks included Citibank, JPMorgan Chase, and Wells Fargo, which had mixed results in morning trading.

Producer Price Index Report

The Labor Department released its Producer Price Index (PPI), showing a 0.2% rise for June and a year-over-year increase of 2.6%. Core wholesale prices, excluding food and energy, rose 0.4% on the month, with an annual increase of 3%. These figures were hotter than estimates and influenced market movements.

Dow Jones and Nasdaq Movements

On Thursday, the Dow Jones Industrial Average gained 0.1%, while the S&P 500 lost 0.9%, and the Nasdaq composite sold off nearly 2%. Despite these losses, Investor’s Business Daily recommended keeping stock market exposure at 80% to 100%, with a closer eye on potential sell signals.

Best Stocks to Watch

Among the best companies to watch were Carvana, Meta Platforms, Monday.com, and Palantir Technologies. Dow Jones components like Amazon, American Express, Apple, JPMorgan, and Microsoft also showed notable movements.

Financial Stocks and Growth Stocks

Financial stocks remained in focus, with JPMorgan trading lower but recovering from lows after reporting earnings. Growth stocks outperformed, with companies like Modine Manufacturing and Taiwan Semiconductor Manufacturing showing positive movements.

Conclusion

The latest inflation data has had a significant impact on the stock market, causing fluctuations in major indices and influencing investor sentiment. As the market continues to react to economic data, investors are advised to stay informed and adjust their strategies accordingly.

Sources

• Stock Market Today: Dow Jones Rises On Hot Inflation Data; Tesla Downgraded To Sell | Investor’s Business Daily, Investor’s Business Daily.
• Stock Market Today: Dow Jones Tops 40,000, Nasdaq Rises; Nvidia, Tesla Rebound (Live Coverage) | Investor’s Business Daily, Investor’s Business Daily.
• Stock market today: Stocks fall from records as Tesla, Nvidia lead tech sell-off, Yahoo Finance.