The S&P 500 opens flat after hot inflation data

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Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., March 13, 2024.
Stocks were little changed Thursday as traders weighed a hotter-than-expected wholesale inflation reading and a decline in market leader Nvidia .
The S&P 500 climbed just 0.1%.
The Dow Jones Industrial Average rose 108 points, or 0.3%.
The Nasdaq Composite advanced 0.1%.
Investors were buying major technology shares like Apple and Microsoft early Thursday.
Trading platform Robinhood popped 10% after the company reported a 16% increase in assets under custody in February from the prior month.
Troubled electric vehicle startup Fisker tumbled 44% after The Wall Street Journal reported that the company has hired restructuring advisors to prepare for a potential bankruptcy filing.
Chipmaker Nvidia pulled back roughly 2%.
February’s producer price index, a measure of wholesale inflation, advanced 0.6% last month.
Excluding food and energy prices, core PPI climbed 0.3% in February, compared to an estimate from economists polled by Dow Jones that forecast headline PPI increased by 0.3% in February, or 0.2% for the core reading.
“The questions now are, will traders rethink how soon the Fed will cuts rates, and will that slow down the stock market rally in any meaningful way?”
said Chris Larkin, managing director of trading and investing at E-Trade from Morgan Stanley.
“So far, the market has shrugged off concerns about stubborn inflation and a cautious Fed.”
The PPI report is the last major piece of economic data to be released prior to the Federal Reserve’s upcoming policy meeting, set for March 19-20.
Meanwhile, former Treasury Secretary Steven Mnuchin told CNBC that he is putting together an investor group to acquire TikTok parent ByteDance should that occur.

In New York City, United States, traders are employed on the floor of the New York Stock Exchange (NYSE). S. March 13, 2024.

On Thursday, traders weighed a drop in market leader Nvidia and a hotter-than-expected wholesale inflation reading, but overall stock movement was minimal.

Only 0.01 percent was gained by the SandP 500. Up 108 points, or 0.3 percent, was the Dow Jones Industrial Average. The Nasdaq Composite saw a 0.1 percent increase.

Early on Thursday, investors were purchasing shares of major technology companies, such as Apple and Microsoft. After the company revealed a 16 percent increase in assets under custody in February compared to January, trading platform Robinhood surged by 10%. Fisker, a troubled electric vehicle startup, saw a 44% decline after The Wall Street Journal revealed that it had hired restructuring advisors in anticipation of possibly declaring bankruptcy. Manufacturer of chips Nvidia retracted by about 2%.

The wholesale inflation indicator for February, the producer price index, increased by 0.6 percent in the previous month. The Dow Jones poll of economists predicted that the headline PPI would rise by 0 points3 percent in February, or 0 points2 percent for the core reading, while the core PPI increased by 0 points3 percent in February when food and energy prices were excluded.

According to Chris Larkin, managing director of trading and investing at E-Trade from Morgan Stanley, “the questions now are, will traders rethink how soon the Fed will cut rates, and will that slow down the stock market rally in any meaningful way?”. “The market has so far dismissed worries about persistent inflation and a cautious Fed. “.

The Federal Reserve’s next policy meeting is scheduled for March 19–20. The PPI report is the final significant economic data release before then. As for the acquisition of TikTok parent company ByteDance, in the event that it happens, former Treasury Secretary Steven Mnuchin told CNBC he is assembling an investor group.

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