Wall Street stocks closed largely unchanged on Thursday, as investors weighed a sharp rise in US wholesale prices against expectations for upcoming interest rate cuts. Oil prices, meanwhile, surged ahead of a high-stakes US-Russia summit on Ukraine.
After starting in the red, major US indices clawed back losses following the release of July’s Producer Price Index (PPI), which jumped 0.9% month-on-month—well above analyst forecasts and in contrast to the tame consumer inflation data reported earlier this week.
“The PPI spike shows inflation is coursing through the economy, even if consumers haven’t felt it yet,” said Chris Zaccarelli, Chief Investment Officer at Northlight Asset Management, calling the figures a “most unwelcome surprise.” He added that the data could dampen expectations for a “guaranteed” rate cut from the Federal Reserve next month.
Futures markets still point to a quarter-point cut, but a larger half-point reduction now appears unlikely, according to Jack Ablin of Cresset Capital Management.
Oil Rises on Summit Uncertainty
Brent crude rose 1.8% to $66.84 a barrel, while West Texas Intermediate climbed 2.1% to $63.96. Traders are bracing for potential fallout from Friday’s meeting between US President Donald Trump and Russian President Vladimir Putin.
European leaders fear Putin could pressure Trump into an unfavorable settlement over Ukraine. But oil traders are also considering the opposite risk—tougher sanctions on Russian crude if talks break down, which could tighten global supply. “The market is very nervous,” said Stephen Schork of the Schork Group.
Global Market Snapshot (2030 GMT)
Dow Jones: -0.1% at 44,911.26
S&P 500: +0.1% at 6,468.54
Nasdaq: Flat at 21,710.67
FTSE 100: +0.1% at 9,177.24
CAC 40: +0.8% at 7,870.34
DAX: +0.8% at 24,377.50
Nikkei 225: -1.5% at 42,649.26
Hang Seng: -0.5% at 25,489.59
Shanghai Composite: -0.5% at 3,666.44
Currencies
Euro: $1.1657 (-)
Pound: $1.3535 (-)
Dollar/Yen: 147.76 (+)
Euro/Pound: £0.8605 (-)
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