PPI Disinflation Boosts Equity Rally
Disinflation signals from favorable PPI data will support equity prices by reducing Fed rate hike expectations
Too little corroboration in the last 3 days to call a trend (4 articles). Watching for it to gain traction.
"Stocks are seeing support as today's favorable PPI report caused a -5 bp decline in the 10-year T-note yield and a drop in expectations for a Fed rate hike to 32% from 40% on Wednesday."
"Stocks are seeing support as today's favorable PPI report caused a -7 bp decline in the 10-year T-note yield and a drop in expectations for a Fed rate hike to 35% from 40% on Wednesday."
"The U.S. stock market is ticking toward a record on Thursday following the latest sign that inflation is getting less bad. Wall Street relaxed a bit after a report showed prices at the U.S. wholesale level were 4.7% higher last month than a year earlier. While that's still very high, it's not as bad as June's 5.5% inflation rate at the wholesale level, and it was slightly better than economists expected."
"Stocks rallied on the favorable PPI report, which prompted a -4 bp decline in the 10-year T-note yield and a drop in expectations for a Fed rate hike in September to 35% from 40% on Wednesday."