On Thursday, US stocks bounced back as investor concerns over rising inflation were temporarily calmed by a softer-than-expected reading on producer prices. The Dow Jones Industrial Average was largely flat, while the S&P 500 rose 0.6% and the Nasdaq Composite gained around 1.2%.
The 10-year Treasury yield, which had surged to its highest level since November the day before, traded around 4.57%. This comes after the Producer Price Index for March showed a 0.2% increase from the previous month, slightly below economists’ predictions but still the biggest jump in almost a year.
Investors had been spooked by a higher-than-expected Consumer Price Index report earlier in the week, leading to a sell-off in stocks and a spike in bond yields. Now, the market is anticipating just two rate cuts in 2024, with some experts even suggesting the possibility of no cuts or even a hike, depending on economic data.
Over in Europe, the European Central Bank decided to maintain its record-high rates but hinted at potential rate cuts in the future. Meanwhile, concerns over rising oil prices due to fears of a potential conflict between Iran and Israel kept crude futures near six-month highs.
Looking ahead, investors are eagerly awaiting first-quarter corporate results, with major banks like JPMorgan set to release updates on Friday. Hopes are high that strong earnings reports could provide the boost needed for stocks to continue their upward momentum.
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