US stocks rip higher ahead of key inflation report
The S&P 500 gained 1.7% on Tuesday, while the tech-heavy Nasdaq 100 jumped 2.5%. The Russell 2000 gained 1.6%.
All sector ETFs gained except for energy, which had a 1% retreat. Tech was the best performing sector thanks to Nvidia, First Solar and Super Micro Computer. The VanEck Semiconductor ETF was up 4.1%.
The July producer price index, which measures wholesale prices, rose 0.1% while PPI excluding volatile food and energy components was flat. The lower-than-expected print also caused economists to revise their estimates downwards for tomorrow’s reading of CPI inflation, and contributed to a rally in the bond market.
The benchmark US 10-year treasury yield was down 6.1 basis points to 3.85%, and the 2-year treasury yield fell 7.7 basis points to 3.94%.
Encouragingly, the strong relationships between wildly different assets that were present during last week’s market turmoil appear to be subsiding, with the US stock market no longer trading in tandem with the Japanese yen.
Starbucks had its best day since the company went public, gaining 24.5% at Tuesday’s close and adding roughly $20 billion to its market cap in a single session. The soaring price came after news broke that Chipotle CEO Brian Niccol will become the beverage giant’s CEO in September, replacing Laxman Narasimhan.
Chipotle, on the other hand, was the worst-performing S&P 500 stock on Tuesday, losing 7.5% following the news of leadership change.
